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Top provisions of the Civil Code or by determinations or conventions agreed upon in a


foreign country
Art. 2 -Laws shall take effect after fifteen days following
Art. 19 - Every person must, in the exercise of his rights
the completion of their publication in the Official Gazette,
and in the performance of his duties, act with justice, give
unless it is otherwise provided. This Code shall take everyone his due, and observe honesty and good faith.
effect one year after such publication.
Art. 20 - Every person who, contrary to law, wilfully or
Art. 3 - Ignorance of the law excuses no one from negligently causes damage to another, shall indemnify
compliance therewith. the latter for the same.

Art. 13 - When the laws speak of years, months, days or Art. 21 - Any person who wilfully causes loss or injury to
nights, it shall be understood that years are of three another in a manner that is contrary to morals, good
hundred sixty-five days each; months, of thirty days; customs or public policy shall compensate the latter for
days, of twenty-four hours; and nights from sunset to the damage.
sunrise.
Art. 29 - When the accused in a criminal prosecution is
Art. 15. Laws relating to family rights and duties, or to acquitted on the ground that his guilt has not been proved
the status, condition and legal capacity of persons are beyond reasonable doubt, a civil action for damages for
binding upon citizens of the Philippines, even though the same act or omission may be instituted. Such action
living abroad. requires only a preponderance of evidence. Upon motion
of the defendant, the court may require the plaintiff to file
Art. 16 - Real property as well as personal property is a bond to answer for damages in case the complaint
subject to the law of the country where it is stipulated. should be found to be malicious.

However, intestate and testamentary If in a criminal case the judgment of acquittal is based
successions, both with respect to the order of succession upon reasonable doubt, the court shall so declare. In the
and to the amount of successional rights and to the absence of any declaration to that effect, it may be
intrinsic validity of testamentary provisions, shall be inferred from the text of the decision whether or not the
regulated by the national law of the person whose acquittal is due to that ground.
succession is under consideration, whatever may be the
nature of the property and regardless of the country Art. 30 - When a separate civil action is brought to
wherein said property may be found. demand civil liability arising from a criminal offense, and
no criminal proceedings are instituted during the
Art. 17 - The forms and solemnities of contracts, wills, pendency of the civil case, a preponderance of evidence
and other public instruments shall be governed by the shall likewise be sufficient to prove the act complained of.
laws of the country in which they are executed.
Art. 31 - When the civil action is based on an obligation
When the acts referred to are executed before the not arising from the act or omission complained of as a
diplomatic or consular officials of the Republic of the felony, such civil action may proceed independently of the
Philippines in a foreign country, the solemnities
criminal proceedings and regardless of the result of the
established by Philippine laws shall be observed in their
execution. latter.

Prohibitive laws concerning persons, their acts or Art. 32 - Any public officer or employee, or any private
property, and those which have, for their object, public individual, who directly or indirectly obstructs, defeats,
order, public policy and good customs shall not be violates or in any manner impedes or impairs any of the
rendered ineffective by laws or judgments promulgated, following rights and liberties of another person shall be
liable to the latter for damages:
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(1) Freedom of religion; (17) Freedom from being compelled to be a
witness against one's self, or from being forced
(2) Freedom of speech; to confess guilt, or from being induced by a
promise of immunity or reward to make such
(3) Freedom to write for the press or to maintain confession, except when the person confessing
a periodical publication; becomes a State witness;

(4) Freedom from arbitrary or illegal detention; (18) Freedom from excessive fines, or cruel and
unusual punishment, unless the same is
(5) Freedom of suffrage; imposed or inflicted in accordance with a statute
which has not been judicially declared
(6) The right against deprivation of property unconstitutional; and
without due process of law;
(19) Freedom of access to the courts.
(7) The right to a just compensation when
private property is taken for public use; In any of the cases referred to in this article, whether or
not the defendant's act or omission constitutes a criminal
(8) The right to the equal protection of the laws; offense, the aggrieved party has a right to commence an
entirely separate and distinct civil action for damages,
and for other relief. Such civil action shall proceed
(9) The right to be secure in one's person,
independently of any criminal prosecution (if the latter be
house, papers, and effects against unreasonable
instituted), and mat be proved by a preponderance of
searches and seizures;
evidence.
(10) The liberty of abode and of changing the
The indemnity shall include moral damages. Exemplary
same;
damages may also be adjudicated.
(11) The privacy of communication and
The responsibility herein set forth is not demandable from
correspondence;
a judge unless his act or omission constitutes a violation
of the Penal Code or other penal statute.
(12) The right to become a member of
associations or societies for purposes not
contrary to law; Art. 33 - In cases of defamation, fraud, and physical
injuries a civil action for damages, entirely separate and
(13) The right to take part in a peaceable distinct from the criminal action, may be brought by the
assembly to petition the government for redress injured party. Such civil action shall proceed
of grievances; independently of the criminal prosecution, and shall
require only a preponderance of evidence.
(14) The right to be free from involuntary
servitude in any form; Art. 34 - When a member of a city or municipal police
force refuses or fails to render aid or protection to any
(15) The right of the accused against excessive
person in case of danger to life or property, such peace
bail;
officer shall be primarily liable for damages, and the city
(16) The right of the accused to be heard by or municipality shall be subsidiarily responsible therefor.
himself and counsel, to be informed of the nature The civil action herein recognized shall be independent of
and cause of the accusation against him, to have any criminal proceedings, and a preponderance of
a speedy and public trial, to meet the witnesses evidence shall suffice to support such action.
face to face, and to have compulsory process to
secure the attendance of witness in his behalf; Art. 35 - When a person, claiming to be injured by a
criminal offense, charges another with the same, for
which no independent civil action is granted in this Code
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or any special law, but the justice of the peace finds no Art. 2 - No marriage shall be valid, unless these essential
reasonable grounds to believe that a crime has been requisites are present:
committed, or the prosecuting attorney refuses or fails to
institute criminal proceedings, the complaint may bring a (1) Legal capacity of the contracting parties who
civil action for damages against the alleged offender. must be a male and a female; and
Such civil action may be supported by a preponderance
of evidence. Upon the defendant's motion, the court may (2) Consent freely given in the presence of the
require the plaintiff to file a bond to indemnify the solemnizing officer.
defendant in case the complaint should be found to be
malicious. Art. 3. The formal requisites of marriage are:
(1) Authority of the solemnizing officer;
If during the pendency of the civil action, an information
should be presented by the prosecuting attorney, the civil (2) A valid marriage license except in the cases
action shall be suspended until the termination of the provided for in Chapter 2 of this Title; and
criminal proceedings.
(3) A marriage ceremony which takes place with
Art. 36 - Pre-judicial questions which must be decided the appearance of the contracting parties before
before any criminal prosecution may be instituted or may the solemnizing officer and their personal
proceed, shall be governed by rules of court which the declaration that they take each other as husband
Supreme Court shall promulgate and which shall not be in and wife in the presence of not less than two
conflict with the provisions of this Code. witnesses of legal age.
Art. 37 - Juridical capacity, which is the fitness to be the
Art. 4. The absence of any of the essential or formal
subject of legal relations, is inherent in every natural
person and is lost only through death. Capacity to act, requisites shall render the marriage void ab initio, except
which is the power to do acts with legal effect, is acquired as stated in Article 35 (2).
and may be lost.
A defect in any of the essential requisites shall
Art. 38 - Minority, insanity or imbecility, the state of being not affect the validity of the marriage but the party or
a deaf-mute, prodigality and civil interdiction are mere parties responsible for the irregularity shall be civilly,
restrictions on capacity to act, and do not exempt the criminally and administratively liable.
incapacitated person from certain obligations, as when
the latter arise from his acts or from property relations, Art. 5 - Any male or female of the age of eighteen years
such as easements. or upwards not under any of the impediments mentioned
in Articles 37 and 38, may contract marriage.
Art. 40 - Birth determines personality; but the conceived
child shall be considered born for all purposes that are Art. 7 - Marriage may be solemnized by:
favorable to it, provided it be born later with the conditions
specified in the following article (1) Any incumbent member of the judiciary within
the court's jurisdiction;
Art. 41 - For civil purposes, the fetus is considered born if
(2) Any priest, rabbi, imam, or minister of any
it is alive at the time it is completely delivered from the church or religious sect duly authorized by his
mother's womb. However, if the fetus had an intra-uterine church or religious sect and registered with the
life of less than seven months, it is not deemed born if it civil registrar general, acting within the limits of
dies within twenty-four hours after its complete delivery the written authority granted by his church or
from the maternal womb. religious sect and provided that at least one of
the contracting parties belongs to the
solemnizing officer's church or religious sect;
Family Code
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(3) Any ship captain or airplane chief only in the Art. 35. The following marriages shall be void from the
case mentioned in Article 31; beginning:

(4) Any military commander of a unit to which a (1) Those contracted by any party below
chaplain is assigned, in the absence of the latter, eighteen years of age even with the consent of
during a military operation, likewise only in the parents or guardians;
cases mentioned in Article 32;
(2) Those solemnized by any person not legally
(5) Any consul-general, consul or vice-consul in authorized to perform marriages unless such
the case provided in Article 10. marriages were contracted with either or both
parties believing in good faith that the
Art. 10 - Marriages between Filipino citizens abroad may solemnizing officer had the legal authority to do
be solemnized by a consul-general, consul or vice-consul so;
of the Republic of the Philippines. The issuance of the
(3) Those solemnized without license, except
marriage license and the duties of the local civil registrar
those covered the preceding Chapter;
and of the solemnizing officer with regard to the
celebration of marriage shall be performed by said (4) Those bigamous or polygamous marriages
consular official. not failing under Article 41;

Art. 25 - The local civil registrar concerned shall enter all (5) Those contracted through mistake of one
applications for marriage licenses filed with him in a contracting party as to the identity of the other;
registry book strictly in the order in which the same are and
received. He shall record in said book the names of the
(6) Those subsequent marriages that are void
applicants, the date on which the marriage license was
under Article 53.
issued, and such other data as may be necessary.
Art. 36 - A marriage contracted by any party who, at the
Art. 26 - All marriages solemnized outside the
time of the celebration, was psychologically incapacitated
Philippines, in accordance with the laws in force in the
to comply with the essential marital obligations of
country where they were solemnized, and valid there as
marriage, shall likewise be void even if such incapacity
such, shall also be valid in this country, except those
becomes manifest only after its solemnization.
prohibited under Articles 35 (1), (4), (5) and (6), 3637 and
38. Art. 37. Marriages between the following are incestuous
and void from the beginning, whether relationship
Where a marriage between a Filipino citizen and between the parties be legitimate or illegitimate:
a foreigner is validly celebrated and a divorce is thereafter
validly obtained abroad by the alien spouse capacitating (1) Between ascendants and descendants of any
him or her to remarry, the Filipino spouse shall have degree; and
capacity to remarry under Philippine law.
(2) Between brothers and sisters, whether of the
full or half blood.
Art. 34. No license shall be necessary for the marriage of
a man and a woman who have lived together as husband
Art. 38 - The following marriages shall be void from the
and wife for at least five years and without any legal beginning for reasons of public policy:
impediment to marry each other. The contracting parties (1) Between collateral blood relatives whether
shall state the foregoing facts in an affidavit before any legitimate or illegitimate, up to the fourth civil
person authorized by law to administer oaths. The degree;
solemnizing officer shall also state under oath that he
ascertained the qualifications of the contracting parties (2) Between step-parents and step-children;
are found no legal impediment to the marriage.
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(3) Between parents-in-law and children-in-law; A sworn statement of the fact and circumstances of
reappearance shall be recorded in the civil registry of the
(4) Between the adopting parent and the residence of the parties to the subsequent marriage at the
adopted child; instance of any interested person, with due notice to the
spouses of the subsequent marriage and without
(5) Between the surviving spouse of the adopting prejudice to the fact of reappearance being judicially
parent and the adopted child; determined in case such fact is disputed.

(6) Between the surviving spouse of the adopted Art. 43 - The termination of the subsequent marriage
child and the adopter; referred to in the preceding Article shall produce the
following effects:
(7) Between an adopted child and a legitimate
child of the adopter; (1) The children of the subsequent marriage
conceived prior to its termination shall be
(8) Between adopted children of the same considered legitimate;
adopter; and
(2) The absolute community of property or the
(9) Between parties where one, with the intention conjugal partnership, as the case may be, shall
to marry the other, killed that other person's be dissolved and liquidated, but if either spouse
spouse, or his or her own spouse. ( contracted said marriage in bad faith, his or her
share of the net profits of the community
property or conjugal partnership property shall
Art. 39 - The action or defense for the declaration of be forfeited in favor of the common children or, if
absolute nullity of a marriage shall not prescribe." there are none, the children of the guilty spouse
by a previous marriage or in default of children,
Art. 40 - The absolute nullity of a previous marriage may the innocent spouse;
be invoked for purposes of remarriage on the basis solely
of a final judgment declaring such previous marriage void. (3) Donations by reason of marriage shall remain
valid, except that if the donee contracted the
Art. 41. A marriage contracted by any person during marriage in bad faith, such donations made to
subsistence of a previous marriage shall be null and void, said donee are revoked by operation of law;
unless before the celebration of the subsequent marriage,
the prior spouse had been absent for four consecutive (4) The innocent spouse may revoke the
years and the spouse present has a well-founded belief designation of the other spouse who acted in
that the absent spouse was already dead. In case of bad faith as beneficiary in any insurance policy,
disappearance where there is danger of death under the even if such designation be stipulated as
circumstances set forth in the provisions of Article 391 of irrevocable; and
the Civil Code, an absence of only two years shall be
sufficient. (5) The spouse who contracted the subsequent
marriage in bad faith shall be disqualified to
For the purpose of contracting the subsequent marriage inherit from the innocent spouse by testate and
under the preceding paragraph the spouse present must intestate succession
institute a summary proceeding as provided in this Code
for the declaration of presumptive death of the absentee, Art. 45 - A marriage may be annulled for any of the
without prejudice to the effect of reappearance of the following causes, existing at the time of the marriage:
absent spouse. (
(1) That the party in whose behalf it is sought to
Art. 42. The subsequent marriage referred to in the have the marriage annulled was eighteen years
preceding Article shall be automatically terminated by the of age or over but below twenty-one, and the
recording of the affidavit of reappearance of the absent marriage was solemnized without the consent of
spouse, unless there is a judgment annulling the previous the parents, guardian or person having
marriage or declaring it void ab initio. substitute parental authority over the party, in
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that order, unless after attaining the age of as will give grounds for action for the annulment of
twenty-one, such party freely cohabited with the marriage.
other and both lived together as husband and
wife; Art. 47 - The action for annulment of marriage must be
filed by the following persons and within the periods
(2) That either party was of unsound mind, indicated herein:
unless such party after coming to reason, freely
cohabited with the other as husband and wife; (1) For causes mentioned in number 1 of Article
45 by the party whose parent or guardian did not
(3) That the consent of either party was obtained give his or her consent, within five years after
by fraud, unless such party afterwards, with full attaining the age of twenty-one, or by the parent
knowledge of the facts constituting the fraud, or guardian or person having legal charge of the
freely cohabited with the other as husband and minor, at any time before such party has reached
wife; the age of twenty-one;

(4) That the consent of either party was obtained (2) For causes mentioned in number 2 of Article
by force, intimidation or undue influence, unless 45, by the same spouse, who had no knowledge
the same having disappeared or ceased, such of the other's insanity; or by any relative or
party thereafter freely cohabited with the other guardian or person having legal charge of the
as husband and wife; insane, at any time before the death of either
party, or by the insane spouse during a lucid
(5) That either party was physically incapable of interval or after regaining sanity;
consummating the marriage with the other, and
such incapacity continues and appears to be (3) For causes mentioned in number 3 of Article
incurable; or 45, by the injured party, within five years after
the discovery of the fraud;
(6) That either party was afflicted with a sexually-
transmissible disease found to be serious and (4) For causes mentioned in number 4 of Article
appears to be incurable. 45, by the injured party, within five years from
the time the force, intimidation or undue
Art. 46 - Any of the following circumstances shall influence disappeared or ceased;
constitute fraud referred to in Number 3 of the preceding
Article: (5) For causes mentioned in number 5 and 6 of
(1) Non-disclosure of a previous conviction by Article 45, by the injured party, within five years
final judgment of the other party of a crime after the marriage.
involving moral turpitude;
Art. 51 - In said partition, the value of the presumptive
(2) Concealment by the wife of the fact that at legitimes of all common children, computed as of the date
the time of the marriage, she was pregnant by a of the final judgment of the trial court, shall be delivered in
man other than her husband; cash, property or sound securities, unless the parties, by
mutual agreement judicially approved, had already
(3) Concealment of sexually transmissible provided for such matters.
disease, regardless of its nature, existing at the
time of the marriage; or The children or their guardian or the trustee of their
property may ask for the enforcement of the judgment.
(4) Concealment of drug addiction, habitual
alcoholism or homosexuality or lesbianism The delivery of the presumptive legitimes herein
existing at the time of the marriage. prescribed shall in no way prejudice the ultimate
successional rights of the children accruing upon the
No other misrepresentation or deceit as to character,
death of either of both of the parents; but the value of the
health, rank, fortune or chastity shall constitute such fraud
properties already received under the decree of
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annulment or absolute nullity shall be considered as (8) Sexual infidelity or perversion;
advances on their legitime. (
(9) Attempt by the respondent against the life of
Art. 52 - The judgment of annulment or of absolute nullity the petitioner; or
of the marriage, the partition and distribution of the
(10) Abandonment of petitioner by respondent
properties of the spouses and the delivery of the without justifiable cause for more than one year.
children's presumptive legitimes shall be recorded in the
appropriate civil registry and registries of property; For purposes of this Article, the term "child" shall include
otherwise, the same shall not affect third persons. a child by nature or by adoption.

Art. 53 - Either of the former spouses may marry again Art. 56 - The petition for legal separation shall be denied
after compliance with the requirements of the immediately on any of the following grounds:
preceding Article; otherwise, the subsequent marriage
shall be null and void. (1) Where the aggrieved party has condoned the
offense or act complained of;
Art. 54 - Children conceived or born before the judgment
of annulment or absolute nullity of the marriage under (2) Where the aggrieved party has consented to
the commission of the offense or act complained
Article 36 has become final and executory shall be
of;
considered legitimate. Children conceived or born of the
subsequent marriage under Article 53 shall likewise be (3) Where there is connivance between the
legitimate. parties in the commission of the offense or act
constituting the ground for legal separation;
Art. 55 - A petition for legal separation may be filed on
any of the following grounds: (4) Where both parties have given ground for
(1) Repeated physical violence or grossly legal separation;
abusive conduct directed against the petitioner, a
common child, or a child of the petitioner; (5) Where there is collusion between the parties
to obtain decree of legal separation; or
(2) Physical violence or moral pressure to
compel the petitioner to change religious or (6) Where the action is barred by prescription.
political affiliation;
Art. 57. An action for legal separation shall be filed within
(3) Attempt of respondent to corrupt or induce
the petitioner, a common child, or a child of the five years from the time of the occurrence of the cause.
petitioner, to engage in prostitution, or
connivance in such corruption or inducement; Art. 68 - The husband and wife are obliged to live
together, observe mutual love, respect and fidelity, and
(4) Final judgment sentencing the respondent to render mutual help and support
imprisonment of more than six years, even if
pardoned; Art. 75 - The future spouses may, in the marriage
settlements, agree upon the regime of absolute
(5) Drug addiction or habitual alcoholism of the community, conjugal partnership of gains, complete
respondent;
separation of property, or any other regime. In the
(6) Lesbianism or homosexuality of the absence of a marriage settlement, or when the regime
respondent; agreed upon is void, the system of absolute community of
property as established in this Code shall govern.
(7) Contracting by the respondent of a
subsequent bigamous marriage, whether in the Art. 84 - If the future spouses agree upon a regime other
Philippines or abroad; than the absolute community of property, they cannot
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donate to each other in their marriage settlements more (1) That which is brought to the marriage as his
than one-fifth of their present property. Any excess shall or her own;
be considered void.
(2) That which each acquires during the
Donations of future property shall be governed by the marriage by gratuitous title;
provisions on testamentary succession and the formalities
of wills. (3) That which is acquired by right of redemption,
by barter or by exchange with property belonging
to only one of the spouses; and

Art. 89 - If the future spouses agree upon a regime other (4) That which is purchased with exclusive
than the absolute community of property, they cannot money of the wife or of the husband.
donate to each other in their marriage settlements more
than one-fifth of their present property. Any excess shall Art. 110 - The spouses retain the ownership, possession,
be considered void. administration and enjoyment of their exclusive
properties.
Donations of future property shall be governed by the
provisions on testamentary succession and the formalities Either spouse may, during the marriage, transfer the
of wills. administration of his or her exclusive property to the other
by means of a public instrument, which shall be recorded
Art. 90 - The provisions on co-ownership shall apply to in the registry of property of the place the property is
the absolute community of property between the spouses located.
in all matters not provided for in this Chapter.
Art. 120 - The ownership of improvements, whether for
Art. 91 - Unless otherwise provided in this Chapter or in utility or adornment, made on the separate property of the
the marriage settlements, the community property shall spouses at the expense of the partnership or through the
consist of all the property owned by the spouses at the acts or efforts of either or both spouses shall pertain to
time of the celebration of the marriage or acquired the conjugal partnership, or to the original owner-spouse,
thereafter. subject to the following rules:

Art. 92 - The following shall be excluded from the When the cost of the improvement made by the
community property: conjugal partnership and any resulting increase
in value are more than the value of the property
at the time of the improvement, the entire
(1) Property acquired during the marriage by
property of one of the spouses shall belong to
gratuitous title by either spouse, and the fruits as
the conjugal partnership, subject to
well as the income thereof, if any, unless it is
reimbursement of the value of the property of the
expressly provided by the donor, testator or
owner-spouse at the time of the improvement;
grantor that they shall form part of the
otherwise, said property shall be retained in
community property;
ownership by the owner-spouse, likewise subject
to reimbursement of the cost of the
(2) Property for personal and exclusive use of improvement.
either spouse. However, jewelry shall form part
of the community property;
In either case, the ownership of the entire
property shall be vested upon the
(3) Property acquired before the marriage by reimbursement, which shall be made at the time
either spouse who has legitimate descendants of the liquidation of the conjugal partnership.
by a former marriage, and the fruits as well as
the income, if any, of such property.
Art. 147 - When a man and a woman who are
capacitated to marry each other, live exclusively with each
Art. 109. The following shall be the exclusive property of other as husband and wife without the benefit of marriage
each spouse:
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or under a void marriage, their wages and salaries shall Art. 152 - The family home, constituted jointly by the
be owned by them in equal shares and the property husband and the wife or by an unmarried head of a
acquired by both of them through their work or industry family, is the dwelling house where they and their family
shall be governed by the rules on co-ownership.
reside, and the land on which it is situated.
In the absence of proof to the contrary, properties
acquired while they lived together shall be presumed to Art. 153 - The family home is deemed constituted on a
have been obtained by their joint efforts, work or industry, house and lot from the time it is occupied as a family
and shall be owned by them in equal shares. For residence. From the time of its constitution and so long as
purposes of this Article, a party who did not participate in any of its beneficiaries actually resides therein, the family
the acquisition by the other party of any property shall be home continues to be such and is exempt from execution,
deemed to have contributed jointly in the acquisition forced sale or attachment except as hereinafter provided
thereof if the former's efforts consisted in the care and
and to the extent of the value allowed by law.
maintenance of the family and of the household.
Art. 154 - The beneficiaries of a family home are:
Neither party can encumber or dispose by acts inter vivos
of his or her share in the property acquired during
cohabitation and owned in common, without the consent (1) The husband and wife, or an unmarried
of the other, until after the termination of their person who is the head of a family; and
cohabitation.
(2) Their parents, ascendants, descendants,
When only one of the parties to a void marriage is in good brothers and sisters, whether the relationship be
faith, the share of the party in bad faith in the co- legitimate or illegitimate, who are living in the
ownership shall be forfeited in favor of their common family home and who depend upon the head of
children. In case of default of or waiver by any or all of the the family for legal support. (226a)
common children or their descendants, each vacant
share shall belong to the respective surviving Art. 155. The family home shall be exempt from
descendants. In the absence of descendants, such share execution, forced sale or attachment except:
shall belong to the innocent party. In all cases, the (1) For nonpayment of taxes;
forfeiture shall take place upon termination of the
cohabitation. (144a) (2) For debts incurred prior to the constitution of
the family home;
Art. 148 - In cases of cohabitation not falling under the
preceding Article, only the properties acquired by both of (3) For debts secured by mortgages on the
the parties through their actual joint contribution of money, premises before or after such constitution; and
property, or industry shall be owned by them in common
in proportion to their respective contributions. In the (4) For debts due to laborers, mechanics,
absence of proof to the contrary, their contributions and architects, builders, materialmen and others who
corresponding shares are presumed to be equal. The have rendered service or furnished material for
same rule and presumption shall apply to joint deposits of the construction of the building. (
money and evidences of credit.
Art. 161 - For purposes of availing of the benefits of a
If one of the parties is validly married to another, his or family home as provided for in this Chapter, a person may
her share in the co-ownership shall accrue to the absolute constitute, or be the beneficiary of, only one family home.
community or conjugal partnership existing in such valid
marriage. If the party who acted in bad faith is not validly
Art. 164. Children conceived or born during the marriage
married to another, his or her shall be forfeited in the
of the parents are legitimate.
manner provided in the last paragraph of the preceding
Article.
Children conceived as a result of artificial insemination of
the wife with the sperm of the husband or that of a donor
The foregoing rules on forfeiture shall likewise apply even
or both are likewise legitimate children of the husband
if both parties are in bad faith.
and his wife, provided, that both of them authorized or
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ratified such insemination in a written instrument proved by:
executed and signed by them before the birth of the child.
The instrument shall be recorded in the civil registry (1) The open and continuous possession of the
together with the birth certificate of the child. status of a legitimate child; or

Art. 166 - Legitimacy of a child may be impugned only on (2) Any other means allowed by the Rules of
the following grounds: Court and special laws.

(1) That it was physically impossible for the Art. 173 - The action to claim legitimacy may be brought
husband to have sexual intercourse with his wife by the child during his or her lifetime and shall be
within the first 120 days of the 300 days which
transmitted to the heirs should the child die during
immediately preceded the birth of the child
because of: minority or in a state of insanity. In these cases, the heirs
shall have a period of five years within which to institute
(a) the physical incapacity of the the action.
husband to have sexual intercourse
with his wife; Art. 175 - Illegitimate children may establish their
illegitimate filiation in the same way and on the same
(b) the fact that the husband and wife evidence as legitimate children.
were living separately in such a way
that sexual intercourse was not The action must be brought within the same period
possible; or specified in Article 173, except when the action is based
on the second paragraph of Article 172, in which case the
(c) serious illness of the husband, action may be brought during the lifetime of the alleged
which absolutely prevented sexual parent.
intercourse;
Art. 176 - Illegitimate children shall use the surname and
(2) That it is proved that for biological or other shall be under the parental authority of their mother, and
scientific reasons, the child could not have been shall be entitled to support in conformity with this Code.
that of the husband, except in the instance
The legitime of each illegitimate child shall consist of one-
provided in the second paragraph of Article 164;
or half of the legitime of a legitimate child. Except for this
modification, all other provisions in the Civil Code
(3) That in case of children conceived through governing successional rights shall remain in force.
artificial insemination, the written authorization or
ratification of either parent was obtained through Art. 177 - Only children conceived and born outside of
mistake, fraud, violence, intimidation, or undue wedlock of parents who, at the time of the conception of
influence. the former, were not disqualified by any impediment to
marry each other may be legitimated.
Art. 172 - The filiation of legitimate children is
established by any of the following: Art. 184 - The following persons may not adopt:

(1) The record of birth appearing in the civil (1) The guardian with respect to the ward prior to
register or a final judgment; or the approval of the final accounts rendered upon
the termination of their guardianship relation;
(2) An admission of legitimate filiation in a public
document or a private handwritten instrument (2) Any person who has been convicted of a
and signed by the parent concerned. crime involving moral turpitude;

In the absence of the foregoing evidence, the legitimate (3) An alien, except:
filiation shall be
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(a) A former Filipino citizen who seeks Art. 191 - If the adopted is a minor or otherwise
to adopt a relative by consanguinity; incapacitated, the adoption may be judicially rescinded
upon petition of any person authorized by the court or
(b) One who seeks to adopt the
proper government instrumental acting on his behalf, on
legitimate child of his or her Filipino
spouse; or the same grounds prescribed for loss or suspension of
parental authority. If the adopted is at least eighteen years
(c) One who is married to a Filipino of age, he may petition for judicial rescission of the
citizen and seeks to adopt jointly with adoption on the same grounds prescribed for disinheriting
his or her spouse a relative by an ascendant.
consanguinity of the latter.
Art. 193 - If the adopted minor has not reached the age
Aliens not included in the foregoing exceptions may adopt of majority at the time of the judicial rescission of the
Filipino children in accordance with the rules on inter- adoption, the court in the same proceeding shall reinstate
country adoptions as may be provided by law. the parental authority of the parents by nature, unless the
latter are disqualified or incapacitated, in which case the
Art. 190 - Legal or intestate succession to the estate of court shall appoint a guardian over the person and
the adopted shall be governed by the following rules: property of the minor. If the adopted person is physically
(1) Legitimate and illegitimate children and or mentally handicapped, the court shall appoint in the
descendants and the surviving spouse of the same proceeding a guardian over his person or property
adopted shall inherit from the adopted, in or both.
accordance with the ordinary rules of legal or
intestate succession; Judicial rescission of the adoption shall extinguish all
reciprocal rights and obligations between the adopters
(2) When the parents, legitimate or illegitimate, and the adopted arising from the relationship of parent
or the legitimate ascendants of the adopted and child. The adopted shall likewise lose the right to use
concur with the adopter, they shall divide the the surnames of the adopters and shall resume his
entire estate, one-half to be inherited by the surname prior to the adoption.
parents or ascendants and the other half, by the
adopters; The court shall accordingly order the amendment of the
records in the proper registries.
(3) When the surviving spouse or the illegitimate
children of the adopted concur with the adopters, Art. 194 - Support comprises everything indispensable
they shall divide the entire estate in equal for sustenance, dwelling, clothing, medical attendance,
shares, one-half to be inherited by the spouse or education and transportation, in keeping with the financial
the illegitimate children of the adopted and the capacity of the family.
other half, by the adopters.
The education of the person entitled to be supported
(4) When the adopters concur with the referred to in the preceding paragraph shall include his
illegitimate children and the surviving spouse of schooling or training for some profession, trade or
the adopted, they shall divide the entire estate in vocation, even beyond the age of majority. Transportation
equal shares, one-third to be inherited by the shall include expenses in going to and from school, or to
illegitimate children, one-third by the surviving and from place of work.
spouse, and one-third by the adopters;
Art. 231 - The court in an action filed for the purpose in a
(5) When only the adopters survive, they shall related case may also suspend parental authority if the
inherit the entire estate; and parent or the person exercising the same:

(6) When only collateral blood relatives of the (1) Treats the child with excessive harshness or
adopted survive, then the ordinary rules of legal cruelty;
or intestate succession shall apply.
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(2) Gives the child corrupting orders, counsel or which tend directly to meet the needs of the said
example; industry or works;

(3) Compels the child to beg; or (6) Animal houses, pigeon-houses, beehives,
fish ponds or breeding places of similar nature,
(4) Subjects the child or allows him to be in case their owner has placed them or
subjected to acts of lasciviousness. preserves them with the intention to have them
permanently attached to the land, and forming a
The grounds enumerated above are deemed to include permanent part of it; the animals in these places
cases which have resulted from culpable negligence of are included;
the parent or the person exercising parental authority.
(7) Fertilizer actually used on a piece of land;
If the degree of seriousness so warrants, or the welfare of
the child so demands, the court shall deprive the guilty (8) Mines, quarries, and slag dumps, while the
party of parental authority or adopt such other measures matter thereof forms part of the bed, and waters
as may be proper under the circumstances. either running or stagnant;

The suspension or deprivation may be revoked and the (9) Docks and structures which, though floating,
parental authority revived in a case filed for the purpose are intended by their nature and object to remain
or in the same proceeding if the court finds that the cause at a fixed place on a river, lake, or coast;
therefor has ceased and will not be repeated.
(10) Contracts for public works, and servitudes
Art. 236 - Emancipation for any cause shall terminate and other real rights over immovable property.
parental authority over the person and property of the (334a)
child who shall then be qualified and responsible for all
Art. 428 - The owner has the right to enjoy and dispose
acts of civil life.
of a thing, without other limitations than those established
by law.
Art. 415 - The following are immovable property:
(1) Land, buildings, roads and constructions of
The owner has also a right of action against the holder
all kinds adhered to the soil;
and possessor of the thing in order to recover it.
(2) Trees, plants, and growing fruits, while they
are attached to the land or form an integral part Art. 430 - Every owner may enclose or fence his land or
of an immovable; tenements by means of walls, ditches, live or dead
hedges, or by any other means without detriment to
(3) Everything attached to an immovable in a servitudes constituted thereon.
fixed manner, in such a way that it cannot be
separated therefrom without breaking the Art. 438 - Hidden treasure belongs to the owner of the
material or deterioration of the object; land, building, or other property on which it is found.

(4) Statues, reliefs, paintings or other objects for Nevertheless, when the discovery is made on the
use or ornamentation, placed in buildings or on property of another, or of the State or any of its
lands by the owner of the immovable in such a subdivisions, and by chance, one-half thereof shall be
manner that it reveals the intention to attach allowed to the finder. If the finder is a trespasser, he shall
them permanently to the tenements; not be entitled to any share of the treasure.

(5) Machinery, receptacles, instruments or If the things found be of interest to science of the arts, the
implements intended by the owner of the State may acquire them at their just price, which shall be
tenement for an industry or works which may be divided in conformity with the rule stated.
carried on in a building or on a piece of land, and
13
Art. 442 - Natural fruits are the spontaneous products of Art. 453 - If there was bad faith, not only on the part of
the soil, and the young and other products of animals. the person who built, planted or sowed on the land of
another, but also on the part of the owner of such land,
Industrial fruits are those produced by lands of any kind the rights of one and the other shall be the same as
through cultivation or labor. though both had acted in good faith.

Civil fruits are the rents of buildings, the price of leases of It is understood that there is bad faith on the part of the
lands and other property and the amount of perpetual or landowner whenever the act was done with his
life annuities or other similar income. knowledge and without opposition on his part.

Art. 445 - Whatever is built, planted or sown on the land Art. 454 - When the landowner acted in bad faith and the
of another and the improvements or repairs made builder, planter or sower proceeded in good faith, the
thereon, belong to the owner of the land, subject to the provisions of article 447 shall apply.
provisions of the following articles.
Art. 455 - If the materials, plants or seeds belong to a
Art. 447 - The owner of the land who makes thereon, third person who has not acted in bad faith, the owner of
the land shall answer subsidiarily for their value and only
personally or through another, plantings, constructions or
in the event that the one who made use of them has no
works with the materials of another, shall pay their value; property with which to pay.
and, if he acted in bad faith, he shall also be obliged to
the reparation of damages. The owner of the materials This provision shall not apply if the owner makes use of
shall have the right to remove them only in case he can the right granted by article 450. If the owner of the
do so without injury to the work constructed, or without materials, plants or seeds has been paid by the builder,
the plantings, constructions or works being destroyed. planter or sower, the latter may demand from the
However, if the landowner acted in bad faith, the owner of landowner the value of the materials and labor.
the materials may remove them in any event, with a right
to be indemnified for damages. Art. 457 - the owners of lands adjoining the banks of
rivers belong the accretion which they gradually receive
Art. 449 - He who builds, plants or sows in bad faith on from the effects of the current of the waters
the land of another, loses what is built, planted or sown
without right to indemnity. Art. 459 - Whenever the current of a river, creek or
torrent segregates from an estate on its bank a known
Art. 450 - The owner of the land on which anything has portion of land and transfers it to another estate, the
been built, planted or sown in bad faith may demand the owner of the land to which the segregated portion
demolition of the work, or that the planting or sowing be belonged retains the ownership of it, provided that he
removed, in order to replace things in their former removes the same within two years.
condition at the expense of the person who built, planted
or sowed; or he may compel the builder or planter to pay Art. 460 - Trees uprooted and carried away by the
the price of the land, and the sower the proper rent. current of the waters belong to the owner of the land upon
which they may be cast, if the owners do not claim them
Art. 451 - In the cases of the two preceding articles, the within six months. If such owners claim them, they shall
landowner is entitled to damages from the builder, planter pay the expenses incurred in gathering them or putting
or sower. them in a safe place.

Art. 452 - The builder, planter or sower in bad faith is Art. 472 - If by the will of their owners two things of the
entitled to reimbursement for the necessary expenses of same or different kinds are mixed, or if the mixture occurs
preservation of the land. by chance, and in the latter case the things are not
separable without injury, each owner shall acquire a right
14
proportional to the part belonging to him, bearing in mind Whenever a part of the thing belongs exclusively to one
the value of the things mixed or confused. of the co-owners, and the remainder is owned in
common, the preceding provision shall apply only to the
Art. 485 - The share of the co-owners, in the benefits as part owned in common.
well as in the charges, shall be proportional to their
respective interests. Any stipulation in a contract to the Art. 493 - Each co-owner shall have the full ownership of
contrary shall be void. his part and of the fruits and benefits pertaining thereto,
and he may therefore alienate, assign or mortgage it, and
The portions belonging to the co-owners in the co- even substitute another person in its enjoyment, except
ownership shall be presumed equal, unless the contrary when personal rights are involved. But the effect of the
is proved.
alienation or the mortgage, with respect to the co-owners,
shall be limited to the portion which may be alloted to him
Art. 488 - Each co-owner shall have a right to compel the
in the division upon the termination of the co-ownership.
other co-owners to contribute to the expenses of
preservation of the thing or right owned in common and to Art. 494 - No co-owner shall be obliged to remain in the
the taxes. Any one of the latter may exempt himself from co-ownership. Each co-owner may demand at any time
this obligation by renouncing so much of his undivided the partition of the thing owned in common, insofar as his
interest as may be equivalent to his share of the share is concerned.
expenses and taxes. No such waiver shall be made if it is
prejudicial to the co-ownership. Nevertheless, an agreement to keep the thing undivided
for a certain period of time, not exceeding ten years, shall
be valid. This term may be extended by a new
Art. 489 - Repairs for preservation may be made at the
agreement.
will of one of the co-owners, but he must, if practicable,
first notify his co-owners of the necessity for such repairs. A donor or testator may prohibit partition for a period
Expenses to improve or embellish the thing shall be which shall not exceed twenty years.
decided upon by a majority as determined in Article 492.
Neither shall there be any partition when it is prohibited
Art. 491 - None of the co-owners shall, without the by law.
consent of the others, make alterations in the thing owned
in common, even though benefits for all would result No prescription shall run in favor of a co-owner or co-heir
therefrom. However, if the withholding of the consent by against his co-owners or co-heirs so long as he expressly
or impliedly recognizes the co-ownership.
one or more of the co-owners is clearly prejudicial to the
common interest, the courts may afford adequate relief.
Art. 495 - Notwithstanding the provisions of the
Art. 492 - For the administration and better enjoyment of preceding article, the co-owners cannot demand a
the thing owned in common, the resolutions of the physical division of the thing owned in common, when to
majority of the co-owners shall be binding. do so would render it unserviceable for the use for which
it is intended. But the co-ownership may be terminated in
There shall be no majority unless the resolution is accordance with Article 498.
approved by the co-owners who represent the controlling
interest in the object of the co-ownership. Art. 501 - Every co-owner shall, after partition, be liable
for defects of title and quality of the portion assigned to
Should there be no majority, or should the resolution of
each of the other co-owners.
the majority be seriously prejudicial to those interested in
the property owned in common, the court, at the instance
Art. 526 - He is deemed a possessor in good faith who is
of an interested party, shall order such measures as it
not aware that there exists in his title or mode of
may deem proper, including the appointment of an
acquisition any flaw which invalidates it.
administrator.
15
He is deemed a possessor in bad faith who possesses in resolutory condition provided in the title creating
any case contrary to the foregoing. the usufruct;

Mistake upon a doubtful or difficult question of law may be (3) By merger of the usufruct and ownership in
the basis of good faith. the same person;

Art. 546 - Necessary expenses shall be refunded to (4) By renunciation of the usufructuary;
every possessor; but only the possessor in good faith
may retain the thing until he has been reimbursed (5) By the total loss of the thing in usufruct;
therefor.
(6) By the termination of the right of the person
Useful expenses shall be refunded only to the possessor constituting the usufruct;
in good faith with the same right of retention, the person
who has defeated him in the possession having the (7) By prescription.
option of refunding the amount of the expenses or of
paying the increase in value which the thing may have
Art. 620 - Continuous and apparent easements are
acquired by reason thereof.
acquired either by virtue of a title or by prescription of ten
years.
Art. 548 - Expenses for pure luxury or mere pleasure
shall not be refunded to the possessor in good faith; but
Art. 621 - In order to acquire by prescription the
he may remove the ornaments with which he has
easements referred to in the preceding article, the time of
embellished the principal thing if it suffers no injury
possession shall be computed thus: in positive
thereby, and if his successor in the possession does not
easements, from the day on which the owner of the
prefer to refund the amount expended.
dominant estate, or the person who may have made use
of the easement, commenced to exercise it upon the
Art. 549 - The possessor in bad faith shall reimburse the
servient estate; and in negative easements, from the day
fruits received and those which the legitimate possessor
on which the owner of the dominant estate forbade, by an
could have received, and shall have a right only to the
instrument acknowledged before a notary public, the
expenses mentioned in paragraph 1 of Article 546 and in
owner of the servient estate, from executing an act which
Article 443. The expenses incurred in improvements for
would be lawful without the easement.
pure luxury or mere pleasure shall not be refunded to the
possessor in bad faith, but he may remove the objects for
Art. 622 - Continuous nonapparent easements, and
which such expenses have been incurred, provided that
discontinuous ones, whether apparent or not, may be
the thing suffers no injury thereby, and that the lawful
acquired only by virtue of a title.
possessor does not prefer to retain them by paying the
value they may have at the time he enters into
Art. 626 - The owner of the dominant estate cannot use
possession.
the easement except for the benefit of the immovable
originally contemplated. Neither can he exercise the
Art. 562 - Usufruct gives a right to enjoy the property of
easement in any other manner than that previously
another with the obligation of preserving its form and
established.
substance, unless the title constituting it or the law
otherwise provides. Art. 649 - The owner, or any person who by virtue of a
real right may cultivate or use any immovable, which is
Art. 603 - Usufruct is extinguished: surrounded by other immovables pertaining to other
(1) By the death of the usufructuary, unless a persons and without adequate outlet to a public highway,
contrary intention clearly appears; is entitled to demand a right of way through the
neighboring estates, after payment of the proper
(2) By the expiration of the period for which it indemnity.
was constituted, or by the fulfillment of any
16
Should this easement be established in such a manner close them should he acquire part-ownership thereof, if
that its use may be continuous for all the needs of the there be no stipulation to the contrary.
dominant estate, establishing a permanent passage, the
indemnity shall consist of the value of the land occupied He can also obstruct them by constructing a building on
and the amount of the damage caused to the servient his land or by raising a wall thereon contiguous to that
estate. having such openings, unless an easement of light has
been acquired.
In case the right of way is limited to the necessary
passage for the cultivation of the estate surrounded by Art. 670 - No windows, apertures, balconies, or other
others and for the gathering of its crops through the similar projections which afford a direct view upon or
servient estate without a permanent way, the indemnity towards an adjoining land or tenement can be made,
shall consist in the payment of the damage caused by without leaving a distance of two meters between the wall
such encumbrance. in which they are made and such contiguous property.

This easement is not compulsory if the isolation of the Neither can side or oblique views upon or towards such
immovable is due to the proprietor's own acts. conterminous property be had, unless there be a distance
of sixty centimeters.
Art. 650 - The easement of right of way shall be
established at the point least prejudicial to the servient The nonobservance of these distances does not give rise
estate, and, insofar as consistent with this rule, where the to prescription.
distance from the dominant estate to a public highway
Art. 719 - Whoever finds a movable, which is not
may be the shortest.
treasure, must return it to its previous possessor. If the
latter is unknown, the finder shall immediately deposit it
Art. 651 - The width of the easement of right of way shall with the mayor of the city or municipality where the finding
be that which is sufficient for the needs of the dominant has taken place.
estate, and may accordingly be changed from time to
time. The finding shall be publicly announced by the mayor for
two consecutive weeks in the way he deems best.
Art. 668 - The period of prescription for the acquisition of
an easement of light and view shall be counted: If the movable cannot be kept without deterioration, or
without expenses which considerably diminish its value, it
(1) From the time of the opening of the window, if shall be sold at public auction eight days after the
it is through a party wall; or publication.

(2) From the time of the formal prohibition upon Six months from the publication having elapsed without
the proprietor of the adjoining land or tenement, the owner having appeared, the thing found, or its value,
if the window is through a wall on the dominant shall be awarded to the finder. The finder and the owner
estate. shall be obliged, as the case may be, to reimburse the
expenses.
Art. 669 - When the distances in Article 670 are not
observed, the owner of a wall which is not party wall, Art. 725 - Donation is an act of liberality whereby a
adjoining a tenement or piece of land belonging to person disposes gratuitously of a thing or right in favor of
another, can make in it openings to admit light at the another, who accepts it.
height of the ceiling joints or immediately under the
ceiling, and of the size of thirty centimeters square, and,
Art. 726 - When a person gives to another a thing or right
in every case, with an iron grating imbedded in the wall
and with a wire screen. on account of the latter's merits or of the services
rendered by him to the donor, provided they do not
Nevertheless, the owner of the tenement or property constitute a demandable debt, or when the gift imposes
adjoining the wall in which the openings are made can upon the donee a burden which is less than the value of
the thing given, there is also a donation.
17
Art. 728 - Donations which are to take effect upon the If the acceptance is made in a separate instrument, the
death of the donor partake of the nature of testamentary donor shall be notified thereof in an authentic form, and
provisions, and shall be governed by the rules this step shall be noted in both instruments.
established in the Title on Succession.
Art. 751 - Donations cannot comprehend future property.
Art. 733 - Donations with an onerous cause shall be By future property is understood anything which the donor
governed by the rules on contracts and remuneratory cannot dispose of at the time of the donation.
donations by the provisions of the present Title as regards
that portion which exceeds the value of the burden Art. 755 - The right to dispose of some of the things
imposed. donated, or of some amount which shall be a charge
thereon, may be reserved by the donor; but if he should
Art. 734 - The donation is perfected from the moment the die without having made use of this right, the property or
donor knows of the acceptance by the donee. amount reserved shall belong to the donee.

Art. 737 - The donor's capacity shall be determined as of Art. 764 - The donation shall be revoked at the instance
the time of the making of the donation. of the donor, when the donee fails to comply with any of
the conditions which the former imposed upon the latter.
Art. 739 - The following donations shall be void:
In this case, the property donated shall be returned to the
(1) Those made between persons who were donor, the alienations made by the donee and the
guilty of adultery or concubinage at the time of mortgages imposed thereon by him being void, with the
the donation; limitations established, with regard to third persons, by
the Mortgage Law and the Land Registration Laws.
(2) Those made between persons found guilty of
the same criminal offense, in consideration This action shall prescribe after four years from the
thereof; noncompliance with the condition, may be transmitted to
the heirs of the donor, and may be exercised against the
(3) Those made to a public officer or his wife, donee's heirs.
descedants and ascendants, by reason of his
office. Art. 805 - Every will, other than a holographic will, must
be subscribed at the end thereof by the testator himself or
In the case referred to in No. 1, the action for declaration by the testator's name written by some other person in his
of nullity may be brought by the spouse of the donor or presence, and by his express direction, and attested and
donee; and the guilt of the donor and donee may be subscribed by three or more credible witnesses in the
proved by preponderance of evidence in the same action. presence of the testator and of one another.

Art. 740 - Incapacity to succeed by will shall be The testator or the person requested by him to write his
name and the instrumental witnesses of the will, shall
applicable to donations inter vivos.
also sign, as aforesaid, each and every page thereof,
except the last, on the left margin, and all the pages shall
Art. 749 - In order that the donation of an immovable be numbered correlatively in letters placed on the upper
may be valid, it must be made in a public document, part of each page.
specifying therein the property donated and the value of
the charges which the donee must satisfy.
The attestation shall state the number of pages used
upon which the will is written, and the fact that the testator
The acceptance may be made in the same deed of signed the will and every page thereof, or caused some
donation or in a separate public document, but it shall not other person to write his name, under his express
take effect unless it is done during the lifetime of the direction, in the presence of the instrumental witnesses,
donor. and that the latter witnessed and signed the will and all
18
the pages thereof in the presence of the testator and of inheritance, shall transmit no right to his own heirs except
one another. in cases expressly provided for in this Code.

If the attestation clause is in a language not known to the Art. 858 - Substitution of heirs may be:
witnesses, it shall be interpreted to them.
(1) Simple or common;
Art. 815 - When a Filipino is in a foreign country, he is
authorized to make a will in any of the forms established (2) Brief or compendious;
by the law of the country in which he may be. Such will
may be probated in the Philippines. (3) Reciprocal; or

(4) Fideicommissary.
Art. 816 - The will of an alien who is abroad produces
effect in the Philippines if made with the formalities
Art. 863 - A fideicommissary substitution by virtue of
prescribed by the law of the place in which he resides, or
which the fiduciary or first heir instituted is entrusted with
according to the formalities observed in his country, or in
the obligation to preserve and to transmit to a second heir
conformity with those which this Code prescribes.
the whole or part of the inheritance, shall be valid and
Art. 838 - No will shall pass either real or personal shall take effect, provided such substitution does not go
property unless it is proved and allowed in accordance beyond one degree from the heir originally instituted, and
with the Rules of Court. provided further, that the fiduciary or first heir and the
second heir are living at the time of the death of the
The testator himself may, during his lifetime, petition the testator.
court having jurisdiction for the allowance of his will. In
such case, the pertinent provisions of the Rules of Court Art. 864 - A fideicommissary substitution can never
for the allowance of wills after the testator's a death shall
burden the legitime.
govern.
Art. 865 - Every fideicommissary substitution must be
The Supreme Court shall formulate such additional Rules
expressly made in order that it may be valid.
of Court as may be necessary for the allowance of wills
on petition of the testator.
The fiduciary shall be obliged to deliver the inheritance to
the second heir, without other deductions than those
Subject to the right of appeal, the allowance of the will,
which arise from legitimate expenses, credits and
either during the lifetime of the testator or after his death,
improvements, save in the case where the testator has
shall be conclusive as to its due execution.
provided otherwise.
Art. 854 - The preterition or omission of one, some, or all
of the compulsory heirs in the direct line, whether living at Art. 915 - A compulsory heir may, in consequence of
the time of the execution of the will or born after the death disinheritance, be deprived of his legitime, for causes
of the testator, shall annul the institution of heir; but the expressly stated by law.
devises and legacies shall be valid insofar as they are not
inofficious. Art. 918 - Disinheritance without a specification of the
cause, or for a cause the truth of which, if contradicted, is
If the omitted compulsory heirs should die before the not proved, or which is not one of those set forth in this
testator, the institution shall be effectual, without prejudice
Code, shall annul the institution of heirs insofar as it may
to the right of representation.
prejudice the person disinherited; but the devises and
Art. 856 - A voluntary heir who dies before the testator legacies and other testamentary dispositions shall be
transmits nothing to his heirs. valid to such extent as will not impair the legitime.

A compulsory heir who dies before the testator, a person Art. 921 - The following shall be sufficient causes for
incapacitated to succeed, and one who renounces the disinheriting a spouse:
19
(1) When the spouse has been convicted of an should have died, leaving several heirs, the portion
attempt against the life of the testator, his or her pertaining to him shall be divided among the latter in
descendants, or ascendants; equal portions.
(2) When the spouse has accused the testator of
Art. 990 - The hereditary rights granted by the two
a crime for which the law prescribes
imprisonment of six years or more, and the preceding articles to illegitimate children shall be
accusation has been found to be false; transmitted upon their death to their descendants, who
shall inherit by right of representation from their deceased
(3) When the spouse by fraud, violence, grandparent.
intimidation, or undue influence cause the
testator to make a will or to change one already Art. 992 - An illegitimate child has no right to inherit ab
made; intestato from the legitimate children and relatives of his
father or mother; nor shall such children or relatives
(4) When the spouse has given cause for legal
inherit in the same manner from the illegitimate child.
separation;

(5) When the spouse has given grounds for the Art. 1001 - Should brothers and sisters or their children
loss of parental authority; survive with the widow or widower, the latter shall be
entitled to one-half of the inheritance and the brothers
(6) Unjustifiable refusal to support the children or and sisters or their children to the other half.
the other spouse.
Art. 1015 - Accretion is a right by virtue of which, when
Art. 923 - The children and descendants of the person two or more persons are called to the same inheritance,
disinherited shall take his or her place and shall preserve devise or legacy, the part assigned to the one who
the rights of compulsory heirs with respect to the legitime; renounces or cannot receive his share, or who died
but the disinherited parent shall not have the usufruct or before the testator, is added or incorporated to that of his
administration of the property which constitutes the co-heirs, co-devisees, or co-legatees.
legitime.
Art. 1025 - In order to be capacitated to inherit, the heir,
Art. 972 - The right of representation takes place in the devisee or legatee must be living at the moment the
direct descending line, but never in the ascending. succession opens, except in case of representation, when
it is proper.
Art. 975 - When children of one or more brothers or
A child already conceived at the time of the death of the
sisters of the deceased survive, they shall inherit from the
decedent is capable of succeeding provided it be born
latter by representation, if they survive with their uncles or later under the conditions prescribed in article 41.
aunts. But if they alone survive, they shall inherit in equal
portions. Art. 1027 - The following are incapable of succeeding:

Art. 977 - Heirs who repudiate their share may not be (1) The priest who heard the confession of the
represented. testator during his last illness, or the minister of
the gospel who extended spiritual aid to him
Art. 981 - Should children of the deceased and during the same period;
descendants of other children who are dead, survive, the
(2) The relatives of such priest or minister of the
former shall inherit in their own right, and the latter by
gospel within the fourth degree, the church,
right of representation. order, chapter, community, organization, or
institution to which such priest or minister may
Art. 982 - The grandchildren and other descendants shall belong;
inherit by right of representation, and if any one of them
20
(3) A guardian with respect to testamentary Art. 1120 - Possession is interrupted for the purposes of
dispositions given by a ward in his favor before prescription, naturally or civilly
the final accounts of the guardianship have been
approved, even if the testator should die after
Art. 1127 - The good faith of the possessor consists in
the approval thereof; nevertheless, any provision
made by the ward in favor of the guardian when the reasonable belief that the person from whom he
the latter is his ascendant, descendant, brother, received the thing was the owner thereof, and could
sister, or spouse, shall be valid; transmit his ownership.

(4) Any attesting witness to the execution of a Art. 1129 - For the purposes of prescription, there is just
will, the spouse, parents, or children, or any one title when the adverse claimant came into possession of
claiming under such witness, spouse, parents, or the property through one of the modes recognized by law
children;
for the acquisition of ownership or other real rights, but
the grantor was not the owner or could not transmit any
(5) Any physician, surgeon, nurse, health officer
or druggist who took care of the testator during right.
his last illness;
Art. 1132 - The ownership of movables prescribes
(6) Individuals, associations and corporations not through uninterrupted possession for four years in good
permitted by law to inherit. faith.

The ownership of personal property also prescribes


Art. 1028 - The prohibitions mentioned in article 739,
through uninterrupted possession for eight years, without
concerning donations inter vivos shall apply to need of any other condition.
testamentary provisions.
With regard to the right of the owner to recover personal
Art. 1034 - In order to judge the capacity of the heir, property lost or of which he has been illegally deprived,
devisee or legatee, his qualification at the time of the as well as with respect to movables acquired in a public
death of the decedent shall be the criterion. sale, fair, or market, or from a merchant's store the
provisions of Articles 559 and 1505 of this Code shall be
In cases falling under Nos. 2, 3, or 5 of Article 1032, it observed.
shall be necessary to wait until final judgment is rendered,
and in the case falling under No. 4, the expiration of the Art. 1137 - Ownership and other real rights over
month allowed for the report.
immovables also prescribe through uninterrupted adverse
possession thereof for thirty years, without need of title or
If the institution, devise or legacy should be conditional,
the time of the compliance with the condition shall also be of good faith.
considered.
Art. 1164 The creditor has a right to the fruits of the
Art. 1035 - If the person excluded from the inheritance thing from the time the obligation to deliver it arises.
by reason of incapacity should be a child or descendant However, he shall acquire no real right over it until the
of the decedent and should have children or same has been delivered to him.
descendants, the latter shall acquire his right to the
legitime. Art. 1165 - When what is to be delivered is a determinate
thing, the creditor, in addition to the right granted him by
Article 1170, may compel the debtor to make the delivery.
Art. 1039 - Capacity to succeed is governed by the law
of the nation of the decedent. If the thing is indeterminate or generic, he may ask that
the obligation be complied with at the expense of the
Art. 1110 - Prescription, acquisitive and extinctive, runs debtor.
in favor of, or against a married woman.
21
If the obligor delays, or has promised to deliver the same Art. 1180 - When the debtor binds himself to pay when
thing to two or more persons who do not have the same his means permit him to do so, the obligation shall be
interest, he shall be responsible for any fortuitous event deemed to be one with a period, subject to the provisions
until he has effected the delivery.
of Article 1197.
Art. 1167 - If a person obliged to do something fails to do
it, the same shall be executed at his cost. Art. 1181 - In conditional obligations, the acquisition of
rights, as well as the extinguishment or loss of those
This same rule shall be observed if he does it in already acquired, shall depend upon the happening of the
contravention of the tenor of the obligation. Furthermore, event which constitutes the condition.
it may be decreed that what has been poorly done be
undone. Art. 1189 - When the conditions have been imposed with
the intention of suspending the efficacy of an obligation to
Art. 1169 - Those obliged to deliver or to do something give, the following rules shall be observed in case of the
incur in delay from the time the obligee judicially or improvement, loss or deterioration of the thing during the
extrajudicially demands from them the fulfillment of their pendency of the condition:
obligation.
(1) If the thing is lost without the fault of the
However, the demand by the creditor shall not be debtor, the obligation shall be extinguished;
necessary in order that delay may exist:
(2) If the thing is lost through the fault of the
(1) When the obligation or the law expressly so debtor, he shall be obliged to pay damages; it is
declare; or understood that the thing is lost when it perishes,
or goes out of commerce, or disappears in such
(2) When from the nature and the circumstances a way that its existence is unknown or it cannot
of the obligation it appears that the designation be recovered;
of the time when the thing is to be delivered or
the service is to be rendered was a controlling (3) When the thing deteriorates without the fault
motive for the establishment of the contract; or of the debtor, the impairment is to be borne by
the creditor;
(3) When demand would be useless, as when
the obligor has rendered it beyond his power to (4) If it deteriorates through the fault of the
perform. debtor, the creditor may choose between the
rescission of the obligation and its fulfillment,
In reciprocal obligations, neither party incurs in delay if with indemnity for damages in either case;
the other does not comply or is not ready to comply in a
proper manner with what is incumbent upon him. From (5) If the thing is improved by its nature, or by
the moment one of the parties fulfills his obligation, delay time, the improvement shall inure to the benefit
by the other begins. (1100a) of the creditor;

Art. 1170. Those who in the performance of their (6) If it is improved at the expense of the debtor,
obligations are guilty of fraud, negligence, or delay, and he shall have no other right than that granted to
those who in any manner contravene the tenor thereof, the usufructuary.
are liable for damages.
Art. 1191 - The power to rescind obligations is implied in
Art. 1174 - Except in cases expressly specified by the reciprocal ones, in case one of the obligors should not
law, or when it is otherwise declared by stipulation, or comply with what is incumbent upon him.
when the nature of the obligation requires the assumption
The injured party may choose between the fulfillment and
of risk, no person shall be responsible for those events
the rescission of the obligation, with the payment of
which could not be foreseen, or which, though foreseen, damages in either case. He may also seek rescission,
were inevitable.
22
even after he has chosen fulfillment, if the latter should Art. 1216 - The creditor may proceed against any one of
become impossible. the solidary debtors or some or all of them
simultaneously. The demand made against one of them
The court shall decree the rescission claimed, unless
shall not be an obstacle to those which may subsequently
there be just cause authorizing the fixing of a period.
be directed against the others, so long as the debt has
This is understood to be without prejudice to the rights of not been fully collected.
third persons who have acquired the thing, in accordance
with Articles 1385 and 1388 and the Mortgage Law Art. 1217 - Payment made by one of the solidary debtors
extinguishes the obligation. If two or more solidary
debtors offer to pay, the creditor may choose which offer
Art. 1196 - Whenever in an obligation a period is
to accept.
designated, it is presumed to have been established for
the benefit of both the creditor and the debtor, unless He who made the payment may claim from his co-debtors
from the tenor of the same or other circumstances it only the share which corresponds to each, with the
should appear that the period has been established in interest for the payment already made. If the payment is
favor of one or of the other. made before the debt is due, no interest for the
intervening period may be demanded.
Art. 1198 - The debtor shall lose every right to make use
of the period: When one of the solidary debtors cannot, because of his
insolvency, reimburse his share to the debtor paying the
(1) When after the obligation has been contracted, he obligation, such share shall be borne by all his co-
becomes insolvent, unless he gives a guaranty or security debtors, in proportion to the debt of each.
for the debt;
Art. 1220 - The remission of the whole obligation,
(2) When he does not furnish to the creditor the obtained by one of the solidary debtors, does not entitle
guaranties or securities which he has promised; him to reimbursement from his co-debtors.

(3) When by his own acts he has impaired said Art. 1235 - When the obligee accepts the performance,
guaranties or securities after their establishment, and
knowing its incompleteness or irregularity, and without
when through a fortuitous event they disappear, unless he
immediately gives new ones equally satisfactory; expressing any protest or objection, the obligation is
deemed fully complied with.
(4) When the debtor violates any undertaking, in
consideration of which the creditor agreed to the period; Art. 1240 - Payment shall be made to the person in
whose favor the obligation has been constituted, or his
(5) When the debtor attempts to abscond. successor in interest, or any person authorized to receive
it.
Art. 1207 - The concurrence of two or more creditors or
of two or more debtors in one and the same obligation Art. 1245 - Dation in payment, whereby property is
does not imply that each one of the former has a right to alienated to the creditor in satisfaction of a debt in money,
demand, or that each one of the latter is bound to render, shall be governed by the law of sales.
entire compliance with the prestation. There is a solidary
liability only when the obligation expressly so states, or Art. 1246 - When the obligation consists in the delivery
when the law or the nature of the obligation requires of an indeterminate or generic thing, whose quality and
solidarity. circumstances have not been stated, the creditor cannot
demand a thing of superior quality. Neither can the debtor
Art. 1211 - Solidarity may exist although the creditors deliver a thing of inferior quality. The purpose of the
and the debtors may not be bound in the same manner obligation and other circumstances shall be taken into
and by the same periods and conditions. consideration.
23
Art. 1248 - Unless there is an express stipulation to that If the debtor accepts from the creditor a receipt in which
effect, the creditor cannot be compelled partially to an application of the payment is made, the former cannot
receive the prestations in which the obligation consists. complain of the same, unless there is a cause for
Neither may the debtor be required to make partial invalidating the contract.
payments.
Art. 1253 - If the debt produces interest, payment of the
However, when the debt is in part liquidated and in part principal shall not be deemed to have been made until the
unliquidated, the creditor may demand and the debtor interests have been covered.
may effect the payment of the former without waiting for
the liquidation of the latter.
Art. 1255 - The debtor may cede or assign his property
Art. 1249 - The payment of debts in money shall be to his creditors in payment of his debts. This cession,
made in the currency stipulated, and if it is not possible to unless there is stipulation to the contrary, shall only
deliver such currency, then in the currency which is legal release the debtor from responsibility for the net proceeds
tender in the Philippines. of the thing assigned. The agreements which, on the
effect of the cession, are made between the debtor and
The delivery of promissory notes payable to order, or bills his creditors shall be governed by special laws.
of exchange or other mercantile documents shall produce
the effect of payment only when they have been cashed, Art. 1256 - If the creditor to whom tender of payment has
or when through the fault of the creditor they have been been made refuses without just cause to accept it, the
impaired. debtor shall be released from responsibility by the
consignation of the thing or sum due.
In the meantime, the action derived from the original
obligation shall be held in the abeyance. Consignation alone shall produce the same effect in the
following cases:
Art. 1251 - Payment shall be made in the place
designated in the obligation. (1) When the creditor is absent or unknown, or
does not appear at the place of payment;
There being no express stipulation and if the undertaking
is to deliver a determinate thing, the payment shall be (2) When he is incapacitated to receive the
made wherever the thing might be at the moment the payment at the time it is due;
obligation was constituted.
(3) When, without just cause, he refuses to give
In any other case the place of payment shall be the a receipt;
domicile of the debtor.
(4) When two or more persons claim the same
If the debtor changes his domicile in bad faith or after he right to collect;
has incurred in delay, the additional expenses shall be
borne by him.
(5) When the title of the obligation has been lost.
These provisions are without prejudice to venue under
the Rules of Court.

Art. 1252 - He who has various debts of the same kind in Art. 1257 - In order that the consignation of the thing due
favor of one and the same creditor, may declare at the may release the obligor, it must first be announced to the
time of making the payment, to which of them the same persons interested in the fulfillment of the obligation.
must be applied. Unless the parties so stipulate, or when
the application of payment is made by the party for whose The consignation shall be ineffectual if it is not made
benefit the term has been constituted, application shall strictly in consonance with the provisions which regulate
not be made as to debts which are not yet due. payment. (1177)
24
Art. 1258. Consignation shall be made by depositing the Art. 1278 - Compensation shall take place when two
things due at the disposal of judicial authority, before persons, in their own right, are creditors and debtors of
whom the tender of payment shall be proved, in a proper each other.
case, and the announcement of the consignation in other
cases.
Art. 1279 - In order that compensation may be proper, it
is necessary:
The consignation having been made, the interested
parties shall also be notified thereof.
(1) That each one of the obligors be bound
principally, and that he be at the same time a
Art. 1259 - The expenses of consignation, when properly principal creditor of the other;
made, shall be charged against the creditor.
(2) That both debts consist in a sum of money, or
Art. 1260 - Once the consignation has been duly made, if the things due are consumable, they be of the
the debtor may ask the judge to order the cancellation of same kind, and also of the same quality if the
the obligation. latter has been stated;

Before the creditor has accepted the consignation, or (3) That the two debts be due;
before a judicial declaration that the consignation has
been properly made, the debtor may withdraw the thing or (4) That they be liquidated and demandable;
the sum deposited, allowing the obligation to remain in
force. (5) That over neither of them there be any
retention or controversy, commenced by third
Art. 1261 - If, the consignation having been made, the persons and communicated in due time to the
creditor should authorize the debtor to withdraw the debtor.
same, he shall lose every preference which he may have
over the thing. The co-debtors, guarantors and sureties Art. 1291 - Obligations may be modified by:
shall be released. (1) Changing their object or principal conditions;

Art. 1262 - An obligation which consists in the delivery of (2) Substituting the person of the debtor;
a determinate thing shall be extinguished if it should be
lost or destroyed without the fault of the debtor, and (3) Subrogating a third person in the rights of the
before he has incurred in delay. creditor.

When by law or stipulation, the obligor is liable even for Art. 1292 - In order that an obligation may be
fortuitous events, the loss of the thing does not extinguish extinguished by another which substitute the same, it is
the obligation, and he shall be responsible for damages. imperative that it be so declared in unequivocal terms, or
The same rule applies when the nature of the obligation that the old and the new obligations be on every point
requires the assumption of risk.
incompatible with each other.

Art. 1266 - The debtor in obligations to do shall also be


Art. 1296 - When the principal obligation is extinguished
released when the prestation becomes legally or
in consequence of a novation, accessory obligations may
physically impossible without the fault of the obligor.
subsist only insofar as they may benefit third persons who
did not give their consent.
Art. 1267 - When the service has become so difficult as
to be manifestly beyond the contemplation of the parties,
Art. 1306 - The contracting parties may establish such
the obligor may also be released therefrom, in whole or in
stipulations, clauses, terms and conditions as they may
part.
deem convenient, provided they are not contrary to law,
morals, good customs, public order, or public policy.
25
Art. 1311 - Contracts take effect only between the (1) Those where one of the parties is incapable
parties, their assigns and heirs, except in case where the of giving consent to a contract;
rights and obligations arising from the contract are not
transmissible by their nature, or by stipulation or by (2) Those where the consent is vitiated by
provision of law. The heir is not liable beyond the value of mistake, violence, intimidation, undue influence
the property he received from the decedent. or fraud.

If a contract should contain some stipulation in favor of a These contracts are binding, unless they are annulled by
third person, he may demand its fulfillment provided he a proper action in court. They are susceptible of
communicated his acceptance to the obligor before its ratification.
revocation. A mere incidental benefit or interest of a
person is not sufficient. The contracting parties must have Art. 1391 - The action for annulment shall be brought
clearly and deliberately conferred a favor upon a third within four years.
person.
This period shall begin:
Art. 1314 - Any third person who induces another to
violate his contract shall be liable for damages to the In cases of intimidation, violence or undue
other contracting party. influence, from the time the defect of the consent
ceases.
Art. 1323 - An offer becomes ineffective upon the death,
civil interdiction, insanity, or insolvency of either party In case of mistake or fraud, from the time of the
discovery of the same.
before acceptance is conveyed.
And when the action refers to contracts entered into by
Art. 1324 - When the offerer has allowed the offeree a minors or other incapacitated persons, from the time the
certain period to accept, the offer may be withdrawn at guardianship ceases.
any time before acceptance by communicating such
withdrawal, except when the option is founded upon a Art. 1399 - When the defect of the contract consists in
consideration, as something paid or promised. the incapacity of one of the parties, the incapacitated
person is not obliged to make any restitution except
Art. 1326 - Advertisements for bidders are simply insofar as he has been benefited by the thing or price
invitations to make proposals, and the advertiser is not received by him.
bound to accept the highest or lowest bidder, unless the
contrary appears. Art. 1403 - The following contracts are unenforceable,
unless they are ratified:
Art. 1327 - The following cannot give consent to a (1) Those entered into in the name of another
contract: person by one who has been given no authority
or legal representation, or who has acted beyond
(1) Unemancipated minors; his powers;

(2) Insane or demented persons, and deaf- (2) Those that do not comply with the Statute of
mutes who do not know how to write. Frauds as set forth in this number. In the
following cases an agreement hereafter made
Art. 1339 - Failure to disclose facts, when there is a duty shall be unenforceable by action, unless the
same, or some note or memorandum, thereof,
to reveal them, as when the parties are bound by
be in writing, and subscribed by the party
confidential relations, constitutes fraud. charged, or by his agent; evidence, therefore, of
the agreement cannot be received without the
Art. 1390 - The following contracts are voidable or writing, or a secondary evidence of its contents:
annullable, even though there may have been no damage
to the contracting parties:
26
(a) An agreement that by its terms is Art. 1412 - If the act in which the unlawful or forbidden
not to be performed within a year from cause consists does not constitute a criminal offense, the
the making thereof; following rules shall be observed:

(b) A special promise to answer for the (1) When the fault is on the part of both
debt, default, or miscarriage of another; contracting parties, neither may recover what he
has given by virtue of the contract, or demand
(c) An agreement made in the performance of the other's undertaking;
consideration of marriage, other than a
mutual promise to marry; (2) When only one of the contracting parties is at
fault, he cannot recover what he has given by
(d) An agreement for the sale of goods, reason of the contract, or ask for the fulfillment of
chattels or things in action, at a price what has been promised him. The other, who is
not less than five hundred pesos, not at fault, may demand the return of what he
unless the buyer accept and receive has given without any obligation to comply his
part of such goods and chattels, or the promise.
evidences, or some of them, of such
things in action or pay at the time some Art. 1413 - Interest paid in excess of the interest allowed
part of the purchase money; but when a by the usury laws may be recovered by the debtor, with
sale is made by auction and entry is interest thereon from the date of the payment.
made by the auctioneer in his sales
book, at the time of the sale, of the
amount and kind of property sold, terms Art. 1420 - In case of a divisible contract, if the illegal
of sale, price, names of the purchasers terms can be separated from the legal ones, the latter
and person on whose account the sale may be enforced.
is made, it is a sufficient memorandum;
Art. 1423 - Obligations are civil or natural. Civil
(e) An agreement of the leasing for a obligations give a right of action to compel their
longer period than one year, or for the performance. Natural obligations, not being based on
sale of real property or of an interest
positive law but on equity and natural law, do not grant a
therein;
right of action to enforce their performance, but after
(f) A representation as to the credit of a voluntary fulfillment by the obligor, they authorize the
third person. retention of what has been delivered or rendered by
reason thereof. Some natural obligations are set forth in
(3) Those where both parties are incapable of the following articles.
giving consent to a contract.
Art. 1424 - When a right to sue upon a civil obligation
Art. 1411 - When the nullity proceeds from the illegality has lapsed by extinctive prescription, the obligor who
of the cause or object of the contract, and the act voluntarily performs the contract cannot recover what he
constitutes a criminal offense, both parties being in pari
has delivered or the value of the service he has rendered.
delicto, they shall have no action against each other, and
both shall be prosecuted. Moreover, the provisions of the
Penal Code relative to the disposal of effects or Art. 1431 - Through estoppel an admission or
instruments of a crime shall be applicable to the things or representation is rendered conclusive upon the person
the price of the contract. making it, and cannot be denied or disproved as against
the person relying thereon.
This rule shall be applicable when only one of the parties
is guilty; but the innocent one may claim what he has Art. 1440 - A person who establishes a trust is called the
given, and shall not be bound to comply with his promise.
trustor; one in whom confidence is reposed as regards
property for the benefit of another person is known as the
27
trustee; and the person for whose benefit the trust has further action against the purchaser to recover
been created is referred to as the beneficiary. any unpaid balance of the price. Any agreement
to the contrary shall be void.
Art. 1448 Associations and societies, whose articles
are kept secret among the members, and wherein any Art. 1485 - The preceding article shall be applied to
one of the members may contract in his own name with contracts purporting to be leases of personal property
third persons, shall have no juridical personality, and shall with option to buy, when the lessor has deprived the
be governed by the provisions relating to co-ownership. lessee of the possession or enjoyment of the thing.

Art. 1453 When property is conveyed to a person in Art. 1496 - The ownership of the thing sold is acquired
reliance upon his declared intention to hold it for, or by the vendee from the moment it is delivered to him in
transfer it to another or the grantor, there is an implied any of the ways specified in Articles 1497 to 1501, or in
trust in favor of the person whose benefit is contemplated. any other manner signifying an agreement that the
possession is transferred from the vendor to the vendee.
Art. 1456 - If property is acquired through mistake or
fraud, the person obtaining it is, by force of law, Art. 1497 - The thing sold shall be understood as
considered a trustee of an implied trust for the benefit of delivered, when it is placed in the control and possession
the person from whom the property comes. of the vendee.

Art. 1475 - The contract of sale is perfected at the Art. 1504 - Unless otherwise agreed, the goods remain
moment there is a meeting of minds upon the thing which at the seller's risk until the ownership therein is
is the object of the contract and upon the price. transferred to the buyer, but when the ownership therein
is transferred to the buyer the goods are at the buyer's
risk whether actual delivery has been made or not, except
From that moment, the parties may reciprocally demand
that:
performance, subject to the provisions of the law
governing the form of contracts.
(1) Where delivery of the goods has been made
to the buyer or to a bailee for the buyer, in
Art. 1479 - A promise to buy and sell a determinate thing
pursuance of the contract and the ownership in
for a price certain is reciprocally demandable.
the goods has been retained by the seller merely
to secure performance by the buyer of his
An accepted unilateral promise to buy or to sell a obligations under the contract, the goods are at
determinate thing for a price certain is binding upon the the buyer's risk from the time of such delivery;
promissor if the promise is supported by a consideration
distinct from the price.
(2) Where actual delivery has been delayed
through the fault of either the buyer or seller the
Art. 1484 - In a contract of sale of personal property the goods are at the risk of the party in fault.
price of which is payable in installments, the vendor may
exercise any of the following remedies: Art. 1537 - The vendor is bound to deliver the thing sold
and its accessions and accessories in the condition in
(1) Exact fulfillment of the obligation, should the which they were upon the perfection of the contract.
vendee fail to pay;
All the fruits shall pertain to the vendee from the day on
(2) Cancel the sale, should the vendee's failure which the contract was perfected.
to pay cover two or more installments;
Art. 1544 - If the same thing should have been sold to
(3) Foreclose the chattel mortgage on the thing different vendees, the ownership shall be transferred to
sold, if one has been constituted, should the the person who may have first taken possession thereof
vendee's failure to pay cover two or more in good faith, if it should be movable property.
installments. In this case, he shall have no
28
Should it be immovable property, the ownership shall However, the vendor may still exercise the right to
belong to the person acquiring it who in good faith first repurchase within thirty days from the time final judgment
recorded it in the Registry of Property. was rendered in a civil action on the basis that the
contract was a true sale with right to repurchase.
Should there be no inscription, the ownership shall
pertain to the person who in good faith was first in the Art. 1607 - In case of real property, the consolidation of
possession; and, in the absence thereof, to the person ownership in the vendee by virtue of the failure of the
who presents the oldest title, provided there is good faith. vendor to comply with the provisions of article 1616 shall
not be recorded in the Registry of Property without a
Art. 1602 - The contract shall be presumed to be an
equitable mortgage, in any of the following cases: judicial order, after the vendor has been duly heard.

(1) When the price of a sale with right to Art. 1619 - Legal redemption is the right to be
repurchase is unusually inadequate; subrogated, upon the same terms and conditions
stipulated in the contract, in the place of one who
(2) When the vendor remains in possession as acquires a thing by purchase or dation in payment, or by
lessee or otherwise; any other transaction whereby ownership is transmitted
by onerous title.
(3) When upon or after the expiration of the right
to repurchase another instrument extending the Art. 1620 - A co-owner of a thing may exercise the right
period of redemption or granting a new period is of redemption in case the shares of all the other co-
executed; owners or of any of them, are sold to a third person. If the
price of the alienation is grossly excessive, the
(4) When the purchaser retains for himself a part redemptioner shall pay only a reasonable one.
of the purchase price;
Should two or more co-owners desire to exercise the right
(5) When the vendor binds himself to pay the of redemption, they may only do so in proportion to the
taxes on the thing sold; share they may respectively have in the thing owned in
common.
(6) In any other case where it may be fairly
inferred that the real intention of the parties is Art. 1621 - The owners of adjoining lands shall also have
that the transaction shall secure the payment of the right of redemption when a piece of rural land, the
a debt or the performance of any other area of which does not exceed one hectare, is alienated,
obligation. unless the grantee does not own any rural land.

In any of the foregoing cases, any money, fruits, or other This right is not applicable to adjacent lands which are
benefit to be received by the vendee as rent or otherwise separated by brooks, drains, ravines, roads and other
shall be considered as interest which shall be subject to apparent servitudes for the benefit of other estates.
the usury laws.
If two or more adjoining owners desire to exercise the
Art. 1603 - In case of doubt, a contract purporting to be a right of redemption at the same time, the owner of the
sale with right to repurchase shall be construed as an adjoining land of smaller area shall be preferred; and
equitable mortgage. should both lands have the same area, the one who first
requested the redemption.
Art. 1606 - The right referred to in Article 1601, in the
absence of an express agreement, shall last four years Art. 1623 - The right of legal pre-emption or redemption
from the date of the contract. shall not be exercised except within thirty days from the
notice in writing by the prospective vendor, or by the
Should there be an agreement, the period cannot exceed vendor, as the case may be. The deed of sale shall not be
ten years. recorded in the Registry of Property, unless accompanied
by an affidavit of the vendor that he has given written
notice thereof to all possible redemptioners.
29
The right of redemption of co-owners excludes that of business or industry to which the lessee devotes the thing
adjoining owners. leased, unless there is a stipulation to the contrary.

Art. 1624 - An assignment of creditors and other Art. 1665 -The lessee shall return the thing leased, upon
incorporeal rights shall be perfected in accordance with the termination of the lease, as he received it, save what
the provisions of Article 1475. has been lost or impaired by the lapse of time, or by
ordinary wear and tear, or from an inevitable cause.
Art. 1634 - When a credit or other incorporeal right in
litigation is sold, the debtor shall have a right to extinguish
Art. 1667 - The lessee is responsible for the deterioration
it by reimbursing the assignee for the price the latter paid
therefor, the judicial costs incurred by him, and the or loss of the thing leased, unless he proves that it took
interest on the price from the day on which the same was place without his fault. This burden of proof on the lessee
paid. does not apply when the destruction is due to earthquake,
flood, storm or other natural calamity.
A credit or other incorporeal right shall be considered in
litigation from the time the complaint concerning the same Art. 1670 - If at the end of the contract the lessee should
is answered. continue enjoying the thing leased for fifteen days with
the acquiescence of the lessor, and unless a notice to the
The debtor may exercise his right within thirty days from
contrary by either party has previously been given, it is
the date the assignee demands payment from him.
understood that there is an implied new lease, not for the
period of the original contract, but for the time established
in Articles 1682 and 1687. The other terms of the original
Art. 1647 - If a lease is to be recorded in the Registry of contract shall be revived.
Property, the following persons cannot constitute the
Art. 1673 - The lessor may judicially eject the lessee for
same without proper authority: the husband with respect
any of the following causes:
to the wife's paraphernal real estate, the father or
guardian as to the property of the minor or ward, and the (1) When the period agreed upon, or that which
manager without special power. is fixed for the duration of leases under Articles
1682 and 1687, has expired;
Art. 1649 - The lessee cannot assign the lease without
the consent of the lessor, unless there is a stipulation to (2) Lack of payment of the price stipulated;
the contrary.
(3) Violation of any of the conditions agreed
Art. 1650 - When in the contract of lease of things there upon in the contract;
is no express prohibition, the lessee may sublet the thing
(4) When the lessee devotes the thing leased to
leased, in whole or in part, without prejudice to his any use or service not stipulated which causes
responsibility for the performance of the contract toward the deterioration thereof; or if he does not
the lessor. observe the requirement in No. 2 of Article 1657,
as regards the use thereof.
Art. 1655 - If the thing leased is totally destroyed by a
fortuitous event, the lease is extinguished. If the The ejectment of tenants of agricultural lands is governed
destruction is partial, the lessee may choose between a by special laws.
proportional reduction of the rent and a rescission of the
Art. 1676 - The purchaser of a piece of land which is
lease.
under a lease that is not recorded in the Registry of
Property may terminate the lease, save when there is a
Art. 1656 - The lessor of a business or industrial stipulation to the contrary in the contract of sale, or when
establishment may continue engaging in the same the purchaser knows of the existence of the lease.
30
If the buyer makes use of this right, the lessee may rent is weekly, the courts may likewise determine a longer
demand that he be allowed to gather the fruits of the period after the lessee has been in possession for over
harvest which corresponds to the current agricultural year six months. In case of daily rent, the courts may also fix a
and that the vendor indemnify him for damages suffered.
longer period after the lessee has stayed in the place for
If the sale is fictitious, for the purpose of extinguishing the over one month.
lease, the supposed vendee cannot make use of the right
granted in the first paragraph of this article. The sale is Art. 1700 - The relations between capital and labor are
presumed to be fictitious if at the time the supposed not merely contractual. They are so impressed with public
vendee demands the termination of the lease, the sale is interest that labor contracts must yield to the common
not recorded in the Registry of Property. good. Therefore, such contracts are subject to the special
laws on labor unions, collective bargaining, strikes and
Art. 1678 - If the lessee makes, in good faith, useful lockouts, closed shop, wages, working conditions, hours
improvements which are suitable to the use for which the
of labor and similar subjects.
lease is intended, without altering the form or substance
of the property leased, the lessor upon the termination of
the lease shall pay the lessee one-half of the value of the Art. 1723 - The engineer or architect who drew up the
improvements at that time. Should the lessor refuse to plans and specifications for a building is liable for
reimburse said amount, the lessee may remove the damages if within fifteen years from the completion of the
improvements, even though the principal thing may suffer structure, the same should collapse by reason of a defect
damage thereby. He shall not, however, cause any more in those plans and specifications, or due to the defects in
impairment upon the property leased than is necessary. the ground. The contractor is likewise responsible for the
damages if the edifice falls, within the same period, on
account of defects in the construction or the use of
With regard to ornamental expenses, the lessee shall not
materials of inferior quality furnished by him, or due to
be entitled to any reimbursement, but he may remove the
any violation of the terms of the contract. If the engineer
ornamental objects, provided no damage is caused to the
or architect supervises the construction, he shall be
principal thing, and the lessor does not choose to retain
solidarily liable with the contractor.
them by paying their value at the time the lease is
extinguished.
Acceptance of the building, after completion, does not
imply waiver of any of the cause of action by reason of
Art. 1680 - The lessee shall have no right to a reduction
any defect mentioned in the preceding paragraph.
of the rent on account of the sterility of the land leased, or
by reason of the loss of fruits due to ordinary fortuitous
events; but he shall have such right in case of the loss of The action must be brought within ten years following the
more than one-half of the fruits through extraordinary and collapse of the building.
unforeseen fortuitous events, save always when there is
a specific stipulation to the contrary. Art. 1724 - The contractor who undertakes to build a
structure or any other work for a stipulated price, in
Extraordinary fortuitous events are understood to be: fire, conformity with plans and specifications agreed upon with
war, pestilence, unusual flood, locusts, earthquake, or the land-owner, can neither withdraw from the contract
others which are uncommon, and which the contracting nor demand an increase in the price on account of the
parties could not have reasonably foreseen. higher cost of labor or materials, save when there has
been a change in the plans and specifications, provided:
Art. 1687 - If the period for the lease has not been fixed,
(1) Such change has been authorized by the
it is understood to be from year to year, if the rent agreed proprietor in writing; and
upon is annual; from month to month, if it is monthly; from
week to week, if the rent is weekly; and from day to day, if (2) The additional price to be paid to the
the rent is to be paid daily. However, even though a contractor has been determined in writing by
monthly rent is paid, and no period for the lease has been both parties.
set, the courts may fix a longer term for the lease after the
lessee has occupied the premises for over one year. If the
31
Art. 1727 - The contractor is responsible for the work Art. 1767 - By the contract of partnership two or more
done by persons employed by him. persons bind themselves to contribute money, property, or
industry to a common fund, with the intention of dividing
Art. 1733 - Common carriers, from the nature of their the profits among themselves.
business and for reasons of public policy, are bound to
observe extraordinary diligence in the vigilance over the Two or more persons may also form a partnership for the
goods and for the safety of the passengers transported by exercise of a profession.
them, according to all the circumstances of each case.
Art. 1797 - The losses and profits shall be distributed in
Such extraordinary diligence in the vigilance over the conformity with the agreement. If only the share of each
goods is further expressed in Articles 1734, 1735, and partner in the profits has been agreed upon, the share of
1745, Nos. 5, 6, and 7, while the extraordinary diligence each in the losses shall be in the same proportion.
for the safety of the passengers is further set forth in
Articles 1755 and 1756. In the absence of stipulation, the share of each partner in
the profits and losses shall be in proportion to what he
Art. 1755 - A common carrier is bound to carry the may have contributed, but the industrial partner shall not
be liable for the losses. As for the profits, the industrial
passengers safely as far as human care and foresight
partner shall receive such share as may be just and
can provide, using the utmost diligence of very cautious equitable under the circumstances. If besides his services
persons, with a due regard for all the circumstances. he has contributed capital, he shall also receive a share
in the profits in proportion to his capital.
Art. 1756 - In case of death of or injuries to passengers,
common carriers are presumed to have been at fault or to Art. 1799 - A stipulation which excludes one or more
have acted negligently, unless they prove that they partners from any share in the profits or losses is void.
observed extraordinary diligence as prescribed in Articles
1733 and 1755. Art. 1800 - The partner who has been appointed
manager in the articles of partnership may execute all
Art. 1759 - Common carriers are liable for the death of or acts of administration despite the opposition of his
injuries to passengers through the negligence or wilful partners, unless he should act in bad faith; and his power
acts of the former's employees, although such employees is irrevocable without just or lawful cause. The vote of the
may have acted beyond the scope of their authority or in partners representing the controlling interest shall be
violation of the orders of the common carriers. necessary for such revocation of power.

This liability of the common carriers does not cease upon A power granted after the partnership has been
proof that they exercised all the diligence of a good father constituted may be revoked at any time.
of a family in the selection and supervision of their
employees. Art. 1801 - If two or more partners have been intrusted
with the management of the partnership without
Art. 1760 - The common carrier's responsibility specification of their respective duties, or without a
prescribed in the preceding article cannot be eliminated stipulation that one of them shall not act without the
or limited by stipulation, by the posting of notices, by consent of all the others, each one may separately
statements on the tickets or otherwise. execute all acts of administration, but if any of them
should oppose the acts of the others, the decision of the
Art. 1764 - Damages in cases comprised in this Section majority shall prevail. In case of a tie, the matter shall be
shall be awarded in accordance with Title XVIII of this decided by the partners owning the controlling interest.
Book, concerning Damages. Article 2206 shall also apply
to the death of a passenger caused by the breach of Art. 1816 - All partners, including industrial ones, shall
contract by a common carrier. be liable pro rata with all their property and after all the
partnership assets have been exhausted, for the
contracts which may be entered into in the name and for
32
the account of the partnership, under its signature and by the use or enjoyment of the same; but the
a person authorized to act for the partnership. However, partnership shall not be dissolved by the loss of
any partner may enter into a separate obligation to the thing when it occurs after the partnership has
acquired the ownership thereof;
perform a partnership contract.
(5) By the death of any partner;
Art. 1829 - On dissolution the partnership is not
terminated, but continues until the winding up of (6) By the insolvency of any partner or of the
partnership affairs is completed. partnership;

Art. 1830 - Dissolution is caused: (7) By the civil interdiction of any partner;

(8) By decree of court under the following article.


(1) Without violation of the agreement between
the partners: Art. 1837 - When dissolution is caused in any way,
except in contravention of the partnership agreement,
(a) By the termination of the definite each partner, as against his co-partners and all persons
term or particular undertaking specified claiming through them in respect of their interests in the
in the agreement; partnership, unless otherwise agreed, may have the
partnership property applied to discharge its liabilities,
(b) By the express will of any partner, and the surplus applied to pay in cash the net amount
who must act in good faith, when no owing to the respective partners. But if dissolution is
definite term or particular is specified; caused by expulsion of a partner, bona fide under the
partnership agreement and if the expelled partner is
(c) By the express will of all the discharged from all partnership liabilities, either by
partners who have not assigned their payment or agreement under the second paragraph of
interests or suffered them to be Article 1835, he shall receive in cash only the net amount
charged for their separate debts, either due him from the partnership.
before or after the termination of any
specified term or particular undertaking; When dissolution is caused in contravention of the
partnership agreement the rights of the partners shall be
(d) By the expulsion of any partner from as follows:
the business bona fide in accordance
with such a power conferred by the (1) Each partner who has not caused dissolution
agreement between the partners; wrongfully shall have:

(2) In contravention of the agreement between (a) All the rights specified in the first
the partners, where the circumstances do not paragraph of this article, and
permit a dissolution under any other provision of
this article, by the express will of any partner at (b) The right, as against each partner
any time; who has caused the dissolution
wrongfully, to damages breach of the
(3) By any event which makes it unlawful for the agreement.
business of the partnership to be carried on or
for the members to carry it on in partnership; (2) The partners who have not caused the
dissolution wrongfully, if they all desire to
(4) When a specific thing which a partner had continue the business in the same name either
promised to contribute to the partnership, by themselves or jointly with others, may do so,
perishes before the delivery; in any case by the during the agreed term for the partnership and
loss of the thing, when the partner who for that purpose may possess the partnership
contributed it having reserved the ownership property, provided they secure the payment by
thereof, has only transferred to the partnership bond approved by the court, or pay any partner
33
who has caused the dissolution wrongfully, the (3) To be indemnified by the person guilty of the
value of his interest in the partnership at the fraud or making the representation against all
dissolution, less any damages recoverable under debts and liabilities of the partnership.
the second paragraph, No. 1 (b) of this article,
and in like manner indemnify him against all Art. 1877 - An agency couched in general terms
present or future partnership liabilities. comprises only acts of administration, even if the principal
should state that he withholds no power or that the agent
(3) A partner who has caused the dissolution
may execute such acts as he may consider appropriate,
wrongfully shall have:
or even though the agency should authorize a general
and unlimited management.
(a) If the business is not continued
under the provisions of the second Art. 1878 - Special powers of attorney are necessary in
paragraph, No. 2, all the rights of a the following cases:
partner under the first paragraph,
subject to liability for damages in the (1) To make such payments as are not usually
second paragraph, No. 1 (b), of this considered as acts of administration;
article.
(2) To effect novations which put an end to
(b) If the business is continued under obligations already in existence at the time the
the second paragraph, No. 2, of this agency was constituted;
article, the right as against his co-
partners and all claiming through them (3) To compromise, to submit questions to
in respect of their interests in the arbitration, to renounce the right to appeal from a
partnership, to have the value of his judgment, to waive objections to the venue of an
interest in the partnership, less any action or to abandon a prescription already
damage caused to his co-partners by acquired;
the dissolution, ascertained and paid to
him in cash, or the payment secured by (4) To waive any obligation gratuitously;
a bond approved by the court, and to
be released from all existing liabilities of (5) To enter into any contract by which the
the partnership; but in ascertaining the ownership of an immovable is transmitted or
value of the partner's interest the value acquired either gratuitously or for a valuable
of the good-will of the business shall consideration;
not be considered.
(6) To make gifts, except customary ones for
Art. 1838 - Where a partnership contract is rescinded on charity or those made to employees in the
the ground of the fraud or misrepresentation of one of the business managed by the agent;
parties thereto, the party entitled to rescind is, without
prejudice to any other right, entitled: (7) To loan or borrow money, unless the latter act
(1) To a lien on, or right of retention of, the be urgent and indispensable for the preservation
surplus of the partnership property after of the things which are under administration;
satisfying the partnership liabilities to third
persons for any sum of money paid by him for (8) To lease any real property to another person
the purchase of an interest in the partnership for more than one year;
and for any capital or advances contributed by
him; (9) To bind the principal to render some service
without compensation;
(2) To stand, after all liabilities to third persons
have been satisfied, in the place of the creditors (10) To bind the principal in a contract of
of the partnership for any payments made by partnership;
him in respect of the partnership liabilities; and
34
(11) To obligate the principal as a guarantor or Art. 1931 - Anything done by the agent, without
surety; knowledge of the death of the principal or of any other
cause which extinguishes the agency, is valid and shall
(12) To create or convey real rights over
be fully effective with respect to third persons who may
immovable property;
have contracted with him in good faith.
(13) To accept or repudiate an inheritance;
Art. 1933 - By the contract of loan, one of the parties
delivers to another, either something not consumable so
(14) To ratify or recognize obligations contracted
that the latter may use the same for a certain time and
before the agency;
return it, in which case the contract is called a
commodatum; or money or other consumable thing, upon
(15) Any other act of strict dominion. the condition that the same amount of the same kind and
quality shall be paid, in which case the contract is simply
Art. 1891 - Every agent is bound to render an account of called a loan or mutuum.
his transactions and to deliver to the principal whatever
he may have received by virtue of the agency, even Commodatum is essentially gratuitous.
though it may not be owing to the principal.
Simple loan may be gratuitous or with a stipulation to pay
Every stipulation exempting the agent from the obligation interest.
to render an account shall be void.
In commodatum the bailor retains the ownership of the
Art. 1898 - f the agent contracts in the name of the thing loaned, while in simple loan, ownership passes to
principal, exceeding the scope of his authority, and the the borrower.
principal does not ratify the contract, it shall be void if the
party with whom the agent contracted is aware of the Art. 1942 - The bailee is liable for the loss of the thing,
limits of the powers granted by the principal. In this case, even if it should be through a fortuitous event:
however, the agent is liable if he undertook to secure the
principal's ratification. (1) If he devotes the thing to any purpose
different from that for which it has been loaned;
Art. 1900 - So far as third persons are concerned, an act
(2) If he keeps it longer than the period
is deemed to have been performed within the scope of stipulated, or after the accomplishment of the
the agent's authority, if such act is within the terms of the use for which the commodatum has been
power of attorney, as written, even if the agent has in fact constituted;
exceeded the limits of his authority according to an
understanding between the principal and the agent. (3) If the thing loaned has been delivered with
appraisal of its value, unless there is a
Art. 1927 - An agency cannot be revoked if a bilateral stipulation exemption the bailee from
responsibility in case of a fortuitous event;
contract depends upon it, or if it is the means of fulfilling
an obligation already contracted, or if a partner is
(4) If he lends or leases the thing to a third
appointed manager of a partnership in the contract of person, who is not a member of his household;
partnership and his removal from the management is
unjustifiable. (5) If, being able to save either the thing
borrowed or his own thing, he chose to save the
Art. 1930 - The agency shall remain in full force and latter. (1744a and 1745)
effect even after the death of the principal, if it has been
constituted in the common interest of the latter and of the Art. 1943. The bailee does not answer for the
agent, or in the interest of a third person who has deterioration of the thing loaned due only to the use
thereof and without his fault. (1746)
accepted the stipulation in his favour.
35
Art. 1944. The bailee cannot retain the thing loaned on Art. 2060. In order that the guarantor may make use of
the ground that the bailor owes him something, even the benefit of exclusion, he must set it up against the
though it may be by reason of expenses. However, the creditor upon the latter's demand for payment from him,
bailee has a right of retention for damages mentioned in and point out to the creditor available property of the
Article 1951. (1747a) debtor within Philippine territory, sufficient to cover the
amount of the debt.
Art. 1945. When there are two or more bailees to whom
a thing is loaned in the same contract, they are liable Art. 2086 - The provisions of Article 2052 are applicable
solidarily. to a pledge or mortgage.

Art. 2047 - By guaranty a person, called the guarantor, Art. 2093 - In addition to the requisites prescribed in
binds himself to the creditor to fulfill the obligation of the
Article 2085, it is necessary, in order to constitute the
principal debtor in case the latter should fail to do so.
contract of pledge, that the thing pledged be placed in the
If a person binds himself solidarily with the principal possession of the creditor, or of a third person by
debtor, the provisions of Section 4, Chapter 3, Title I of common agreement.
this Book shall be observed. In such case the contract is
called a suretyship. Art. 2104 - The creditor cannot use the thing pledged,
without the authority of the owner, and if he should do so,
Art. 2052 - A guaranty cannot exist without a valid or should misuse the thing in any other way, the owner
obligation. may ask that it be judicially or extrajudicially deposited.
When the preservation of the thing pledged requires its
Nevertheless, a guaranty may be constituted to
guarantee the performance of a voidable or an use, it must be used by the creditor but only for that
unenforceable contract. It may also guarantee a natural purpose.
obligation.
Art. 2114 - All bids at the public auction shall offer to pay
Art. 2058 - he guarantor cannot be compelled to pay the the purchase price at once. If any other bid is accepted,
creditor unless the latter has exhausted all the property of the pledgee is deemed to have been received the
the debtor, and has resorted to all the legal remedies purchase price, as far as the pledgor or owner is
against the debtor. concerned.

Art. 2059 - The excussion shall not take place: Art. 2115 - The sale of the thing pledged shall extinguish
the principal obligation, whether or not the proceeds of
(1) If the guarantor has expressly renounced it; the sale are equal to the amount of the principal
obligation, interest and expenses in a proper case. If the
(2) If he has bound himself solidarily with the price of the sale is more than said amount, the debtor
debtor;
shall not be entitled to the excess, unless it is otherwise
agreed. If the price of the sale is less, neither shall the
(3) In case of insolvency of the debtor;
creditor be entitled to recover the deficiency,
(4) When he has absconded, or cannot be sued notwithstanding any stipulation to the contrary.
within the Philippines unless he has left a
manager or representative; Art. 2124 - Only the following property may be the object
of a contract of mortgage:
(5) If it may be presumed that an execution on (1) Immovables;
the property of the principal debtor would not
result in the satisfaction of the obligation. (2) Alienable real rights in accordance with the
(1831a) laws, imposed upon immovables.
36
Nevertheless, movables may be the object of a chattel (1) If he undertakes risky operations which the
mortgage. owner was not accustomed to embark upon;

Art. 2132 - By the contract of antichresis the creditor (2) If he has preferred his own interest to that of
acquires the right to receive the fruits of an immovable of the owner;
his debtor, with the obligation to apply them to the
(3) If he fails to return the property or business
payment of the interest, if owing, and thereafter to the
after demand by the owner;
principal of his credit.
(4) If he assumed the management in bad faith.
Art. 2144 - Whoever voluntarily takes charge of the
agency or management of the business or property of
another, without any power from the latter, is obliged to Art. 2149 - The ratification of the management by the
continue the same until the termination of the affair and its owner of the business produces the effects of an express
incidents, or to require the person concerned to substitute agency, even if the business may not have been
him, if the owner is in a position to do so. This juridical successful.
relation does not arise in either of these instances:
(1) When the property or business is not Art. 2150 - Although the officious management may not
neglected or abandoned; have been expressly ratified, the owner of the property or
business who enjoys the advantages of the same shall be
(2) If in fact the manager has been tacitly liable for obligations incurred in his interest, and shall
authorized by the owner. reimburse the officious manager for the necessary and
useful expenses and for the damages which the latter
In the first case, the provisions of Articles 1317, 1403, No. may have suffered in the performance of his duties.
1, and 1404 regarding unauthorized contracts shall
govern. The same obligation shall be incumbent upon him when
the management had for its purpose the prevention of an
In the second case, the rules on agency in Title X of this imminent and manifest loss, although no benefit may
Book shall be applicable. have been derived.

Art. 2145 - The officious manager shall perform his Art. 2154 - If something is received when there is no
duties with all the diligence of a good father of a family, right to demand it, and it was unduly delivered through
and pay the damages which through his fault or mistake, the obligation to return it arises.
negligence may be suffered by the owner of the property
or business under management.
Art. 2174 - When in a small community a nationality of
The courts may, however, increase or moderate the the inhabitants of age decide upon a measure for
indemnity according to the circumstances of each case. protection against lawlessness, fire, flood, storm or other
(1889a) calamity, any one who objects to the plan and refuses to
contribute to the expenses but is benefited by the project
Art. 2146. If the officious manager delegates to another as executed shall be liable to pay his share of said
person all or some of his duties, he shall be liable for the expenses.
acts of the delegate, without prejudice to the direct
obligation of the latter toward the owner of the business.
Art. 2176 - Whoever by act or omission causes damage
to another, there being fault or negligence, is obliged to
The responsibility of two or more officious managers shall
be solidary, unless the management was assumed to pay for the damage done. Such fault or negligence, if
save the thing or business from imminent danger. there is no pre-existing contractual relation between the
parties, is called a quasi-delict and is governed by the
Art. 2147 - The officious manager shall be liable for any provisions of this Chapter.
fortuitous event:
37
Art. 2179 - When the plaintiff's own negligence was the driver was negligent, if he had been found guilty or
immediate and proximate cause of his injury, he cannot reckless driving or violating traffic regulations at least
recover damages. But if his negligence was only twice within the next preceding two months.
contributory, the immediate and proximate cause of the
If the owner was not in the motor vehicle, the provisions
injury being the defendant's lack of due care, the plaintiff of Article 2180 are applicable.
may recover damages, but the courts shall mitigate the
damages to be awarded. Art. 2190 - The proprietor of a building or structure is
responsible for the damages resulting from its total or
Art. 2180 - The obligation imposed by Article 2176 is
partial collapse, if it should be due to the lack of
demandable not only for one's own acts or omissions, but
also for those of persons for whom one is responsible. necessary repairs.

The father and, in case of his death or incapacity, the Art. 2194 - The responsibility of two or more persons
mother, are responsible for the damages caused by the who are liable for quasi-delict is solidary.
minor children who live in their company.
Art. 2201 - In contracts and quasi-contracts, the
Guardians are liable for damages caused by the minors damages for which the obligor who acted in good faith is
or incapacitated persons who are under their authority liable shall be those that are the natural and probable
and live in their company. consequences of the breach of the obligation, and which
the parties have foreseen or could have reasonably
The owners and managers of an establishment or foreseen at the time the obligation was constituted.
enterprise are likewise responsible for damages caused
by their employees in the service of the branches in which In case of fraud, bad faith, malice or wanton attitude, the
the latter are employed or on the occasion of their obligor shall be responsible for all damages which may be
functions. reasonably attributed to the non-performance of the
obligation.
Employers shall be liable for the damages caused by their
employees and household helpers acting within the scope Art. 2206 - The amount of damages for death caused by
of their assigned tasks, even though the former are not a crime or quasi-delict shall be at least three thousand
engaged in any business or industry. pesos, even though there may have been mitigating
circumstances. In addition:
The State is responsible in like manner when it acts (1) The defendant shall be liable for the loss of
through a special agent; but not when the damage has the earning capacity of the deceased, and the
been caused by the official to whom the task done indemnity shall be paid to the heirs of the latter;
properly pertains, in which case what is provided in Article such indemnity shall in every case be assessed
2176 shall be applicable. and awarded by the court, unless the deceased
on account of permanent physical disability not
Lastly, teachers or heads of establishments of arts and caused by the defendant, had no earning
trades shall be liable for damages caused by their pupils capacity at the time of his death;
and students or apprentices, so long as they remain in
their custody. (2) If the deceased was obliged to give support
according to the provisions of Article 291, the
The responsibility treated of in this article shall cease recipient who is not an heir called to the
when the persons herein mentioned prove that they decedent's inheritance by the law of testate or
observed all the diligence of a good father of a family to intestate succession, may demand support from
prevent damage. the person causing the death, for a period not
exceeding five years, the exact duration to be
Art. 2184 - In motor vehicle mishaps, the owner is fixed by the court;
solidarily liable with his driver, if the former, who was in
the vehicle, could have, by the use of the due diligence, (3) The spouse, legitimate and illegitimate
prevented the misfortune. It is disputably presumed that a descendants and ascendants of the deceased
38
may demand moral damages for mental anguish (11) In any other case where the court deems it
by reason of the death of the deceased. just and equitable that attorney's fees and
expenses of litigation should be recovered.
Art. 2207 - If the plaintiff's property has been insured,
and he has received indemnity from the insurance In all cases, the attorney's fees and expenses of litigation
company for the injury or loss arising out of the wrong or must be reasonable.
breach of contract complained of, the insurance company
Art. 2209 - If the obligation consists in the payment of a
shall be subrogated to the rights of the insured against
sum of money, and the debtor incurs in delay, the
the wrongdoer or the person who has violated the
indemnity for damages, there being no stipulation to the
contract. If the amount paid by the insurance company
contrary, shall be the payment of the interest agreed
does not fully cover the injury or loss, the aggrieved party
upon, and in the absence of stipulation, the legal interest,
shall be entitled to recover the deficiency from the person
which is six per cent per annum.
causing the loss or injury.
Art. 2214 - In quasi-delicts, the contributory negligence
Art. 2208 - In the absence of stipulation, attorney's fees
of the plaintiff shall reduce the damages that he may
and expenses of litigation, other than judicial costs,
recover.
cannot be recovered, except:

(1) When exemplary damages are awarded; Art. 2217 - Moral damages include physical suffering,
mental anguish, fright, serious anxiety, besmirched
(2) When the defendant's act or omission has reputation, wounded feelings, moral shock, social
compelled the plaintiff to litigate with third humiliation, and similar injury. Though incapable of
persons or to incur expenses to protect his pecuniary computation, moral damages may be
interest; recovered if they are the proximate result of the
defendant's wrongful act for omission.
(3) In criminal cases of malicious prosecution
against the plaintiff; Art. 2219 - Moral damages may be recovered in the
following and analogous cases:
(4) In case of a clearly unfounded civil action or
proceeding against the plaintiff; (1) A criminal offense resulting in physical
injuries;
(5) Where the defendant acted in gross and
evident bad faith in refusing to satisfy the (2) Quasi-delicts causing physical injuries;
plaintiff's plainly valid, just and demandable
claim;
(3) Seduction, abduction, rape, or other
lascivious acts;
(6) In actions for legal support;
(4) Adultery or concubinage;
(7) In actions for the recovery of wages of
household helpers, laborers and skilled workers;
(5) Illegal or arbitrary detention or arrest;
(8) In actions for indemnity under workmen's
(6) Illegal search;
compensation and employer's liability laws;
(7) Libel, slander or any other form of
(9) In a separate civil action to recover civil
defamation;
liability arising from a crime;
(8) Malicious prosecution;
(10) When at least double judicial costs are
awarded;
(9) Acts mentioned in Article 309;
39
(10) Acts and actions referred to in Articles 21,
26, 27, 28, 29, 30, 32, 34, and 35.

The parents of the female seduced, abducted, raped, or


abused, referred to in No. 3 of this article, may also
recover moral damages.

The spouse, descendants, ascendants, and brothers and


sisters may bring the action mentioned in No. 9 of this
article, in the order named.

Art. 2220 - Willful injury to property may be a legal


ground for awarding moral damages if the court should
find that, under the circumstances, such damages are
justly due. The same rule applies to breaches of contract
where the defendant acted fraudulently or in bad faith.

Art. 2221 - Nominal damages are adjudicated in order


that a right of the plaintiff, which has been violated or
invaded by the defendant, may be vindicated or
recognized, and not for the purpose of indemnifying the
plaintiff for any loss suffered by him.

Art. 2224 - Temperate or moderate damages, which are


more than nominal but less than compensatory damages,
may be recovered when the court finds that some
pecuniary loss has been suffered but its amount can not,
from the nature of the case, be provided with certainty.

Art. 2232 - In contracts and quasi-contracts, the court


may award exemplary damages if the defendant acted in
a wanton, fraudulent, reckless, oppressive, or malevolent
manner.

Art. 2234 - While the amount of the exemplary damages


need not be proved, the plaintiff must show that he is
entitled to moral, temperate or compensatory damages
before the court may consider the question of whether or
not exemplary damages should be awarded. In case
liquidated damages have been agreed upon, although no
proof of loss is necessary in order that such liquidated
damages may be recovered, nevertheless, before the
court may consider the question of granting exemplary in
addition to the liquidated damages, the plaintiff must show
that he would be entitled to moral, temperate or
compensatory damages were it not for the stipulation for
liquidated damages.